Simple interest is the interest calculated on the principal amount over a period of time.
In general,
\(I = \frac{PRT}{100}\)
where: \(I\) = Simple Interest \(P\) = Principal (initial amount) \(R\) = Annual interest rate (\(\%\)) \(T\) = Time (number of periods, usually in years)
Key Points:
<ul class="bullet-list"><li><div class="list-item-content">The interest is constant for each period (year).</div></li><li><div class="list-item-content">Total Amount \(= P + I\)</div></li></ul>

**Simple interest** is the interest calculated on the principal amount over a period of time.

where:
\(I\) = Simple Interest
\(P\) = Principal (initial amount)
\(R\) = Annual interest rate (\(\%\))
\(T\) = Time (number of periods, usually in years)