# Finite Math Examples

, ,

Step 1

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

Step 2

Step 2.1

Remove parentheses.

Step 2.2

Multiply by .

Step 3

Substitute the known values into the formula.

Step 4

Step 4.1

Simplify .

Step 4.1.1

Convert to a decimal.

Step 4.1.2

Multiply .

Step 4.1.2.1

Multiply by .

Step 4.1.2.2

Multiply by .