There are several ways in which interest is calculated and paid. The simplest of the methods used is called simple interest. The formula for this is \[S=P\times \mathit{r}\times \mathit{t}\:\Longrightarrow {Formula}\:\mathit{1}\] where \[S = Simple\: Interest\] \[P = Principle\: /Present\: Value\] \[\mathit{ r}\ = Interest\: rate\] \[\mathit{t}\ = period\] Let us consider an example of an investment … Continue reading Simple Interest