10 Examples of Simple Interest

Simple interest is a fundamental concept in mathematics and finance that involves calculating the interest earned or paid on a principal amount over time at a fixed rate.

Simple interest is calculated using the formula SI = P×R×T, which makes it easy to determine earnings or costs over time. Calculate it instantly with our Simple Interest Calculator.

Examples of Simple Interest

These are 10 examples of simple interest.

Example: 1

Principal amount: $1,000 Interest rate: 5% per year Time: 2 years Interest = Principal x Rate x Time = $1,000 x 0.05 x 2 = $100

Example: 2

Principal amount: $2,500 Interest rate: 4% per year Time: 5 years Interest = $2,500 x 0.04 x 5 = $500

Example: 3

Principal amount: $650 Interest rate: 7% per year Time: 3 years Interest = $650 x 0.07 x 3 = $136.50

Example: 4

Principal amount: $12,000 Interest rate: 3.5% per year Time: 1 year Interest = $12,000 x 0.035 x 1 = $420

Example: 5

Principal amount: $750 Interest rate: 2.5% per year Time: 6 months Interest = $750 x 0.025 x (6/12) = $9.38

Example: 6

Principal amount: $4,800 Interest rate: 6% per year Time: 9 months Interest = $4,800 x 0.06 x (9/12) = $216

Example: 7

Principal amount: $7,500 Interest rate: 8% per year Time: 2.5 years
Interest = $7,500 x 0.08 x 2.5 = $1,500

Example: 8

Principal amount: $9,800 Interest rate: 12% per year Time: 4 years Interest = $9,800 x 0.12 x 4 = $4,704

Example: 9

Principal amount: $650 Interest rate: 5% per year Time: 18 months Interest = $650 x 0.05 x (18/12) = $48.75

Example: 10

Principal amount: $1,200 Interest rate: 15% per year Time: 3 years Interest = $1,200 x 0.15 x 3 = $540