Simple Interest

is the interest calculated on the original principal for the entire period it is borrowed or invested.

I=Prt

S=P(1+rt)

RM 12500 is invested for 5 years in a bank earning a simple interest rate of 15% per annum.Find the simple amount at the end of the investment period.

P=12500

r=15%

t=5 years

I=Prt

=12500(15%)(5)

=RM 9375

S=P(1+rt)

=12599(1+15%)(5)

=RM 21875