Finite Math Examples

$p = 8000$ , $r = 10 %$ , $t = 5$

Simple interest is calculated on the original principal only. Accumulated interest from prior periods is not used in calculations for the following periods.

$i = p \cdot r \cdot t$

Multiply $p r$ by $t$ .

$i = p r t$

Substitute the known values into the formula.

$i = (8000) \cdot (10 %) \cdot (5)$

Simplify $(8000) \cdot (10 %) \cdot (5)$ .

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Convert $10 %$ to a decimal.

$i = 8000 \cdot 0.1 \cdot 5$

Multiply $8000$ by $0.1$ .

$i = 800 \cdot 5$

Multiply $800$ by $5$ .

$i = 4000$

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