Simple interest calculation formula.
The simple interest amount is equal to the principal amount times the annual 利率 divided by the number of periods per year m, times the number of periods n:
simple interest amount = principal amount × (rate / m) × n
计算 the simple interest amount of principal amount of $5,000, annual 利率 of 6% and 时间 of 18 months.
Solution:
principal amount = $5,000
rate = 6%
m = 12 months/year
n = 18 months
simple interest amount = $5,000 × (6% / 12months/year) × 18months
= $5,000 × (0.06 / 12months/year) × 18months
= $450
