# Simple Interest Definition: Who Benefits, With Formula and Example.

Who Benefits from Simple Interest?

With Formula and Example

How do you find interest example? Assuming you would like an example of how to calculate interest, we will use the following scenario:

You have a savings account that pays 2% interest per year.
You deposit \$1,000 into the account on January 1st.

At the end of the year, you will have earned \$20 in interest.

To calculate the interest, you would multiply the interest rate (2%) by the principal (the amount of money in the account, \$1,000). This gives you \$20, which is the amount of interest you will have earned over the course of the year.

#### What is the Si formula?

The Si formula is a mathematical formula used to calculate the interest due on a loan. The formula is:

Si = P(1 + rt)

Where:

Si = the interest due

P = the principal amount

r = the interest rate

t = the number of days the interest is accrued

##### How do you solve a simple interest question?

In order to solve a simple interest question, you need to know the following:

-The principal, which is the amount of money being borrowed or invested
-The interest rate, which is the percentage of the principal that will be charged as interest
-The time period, which is the length of time over which the interest will be charged

With this information, you can calculate the amount of interest that will be charged using the following formula:

Interest = Principal x Interest Rate x Time Period

For example, if you are borrowing \$1000 at a 5% interest rate for a period of 2 years, the amount of interest that will be charged is \$1000 x 5% x 2 years, or \$100.

What is simple interest and how do you calculate it? Simple interest is a type of interest that is calculated based on the principal amount of the loan, and it does not compound over time. To calculate simple interest, you need to know the principal amount, the interest rate, and the number of days that the interest will accrue. The formula for simple interest is:

Interest = Principal x Interest Rate x Number of Days

For example, let's say you have a loan of \$1,000 with an interest rate of 5% and you want to know how much interest you will accrue over 30 days. The formula would be:

Interest = \$1,000 x 5% x 30

Interest = \$150

So, the total amount you would owe after 30 days would be \$1,150.

Who discovered simple interest formula? The simple interest formula was discovered by a man named John D. Rockefeller. Rockefeller was an American businessman and philanthropist who founded the Standard Oil Company. He is widely considered to be one of the most influential businessmen of his time.