Answer:

Simple interest formula and examples

In many simple interest problems, you will be finding the total interest earned over a set period, which is represented as I. ...

Let's use an example to see how this formula works. ...

I=Prt=500(0.04)(2)=40.

t=412=13.

I=Prt=1200(0.06)(13)=24.

The total amount they will repay is the future value, A.