Answer:
Simple interest is calculated by multiplying the daily interest rate by the principal, by the number of days that elapse between payments.
Step-by-step explanation:
Principal x rate x time = interest.
$100 x .05 x 1 = $5 simple interest for one year.
$100 x .05 x 3 = $15 simple interest for three years.
Answer:
Step-by-step explanation:
1. Simple interest is calculated by multiplying the daily interest rate by the principal, by the number of days that elapse between payments.
2.Simple interest benefits consumers who pay their loans on time or early each month.
3.Auto loans and short-term personal loans are usually simple interest loans.
