Simple interest is a method of calculating the interest charge on a loan or investment based solely on the original principal amount and the interest rate over a specific period of time. It is calculated using the formula: $$I = P imes r imes t$$, where $$I$$ is the interest, $$P$$ is the principal, $$r$$ is the annual interest rate, and $$t$$ is the time in years. Simple interest is straightforward and helps borrowers and investors understand how much they will owe or earn over time.
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