Simple Interest
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The FormulaThe formula is I=prt. The p means Principle. For example $2,000 would be the principle. The r is rate. For example, 4% is the rate. The t means time. For example, 5 years is time. The one you are solving for is I, which is the interest.
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Solving
To solve simple interest you multiply prt, but before you multiply you must first change the rate in to a decimal. For example, 4% would change to .04. After you change the rate, it's time to multiply.