Simple Interest

Simple Interest I = Prt

I = simple interest
P = principal
r = rate of simple interest
t = time or term in years

Simple Amount S = P(1 + rt)

S = original principal + interest earned
S = P + Prt

Example :-
RM10 000 is invested for 4 years 9 month in a bank earning a simple interest rate of 10% per annum. Find the simple amount at the end of the investment period

P = RM10 000
r = 10%
t = 4.75 years

I = Prt
I = 10 000 x 0.1 x 4.75
= RM4750

S = P + I
S = 10 000 + 4750
= RM14 750

OR

S = P(I + rt)
S = 10000 (1+0.1x4.75)
= RM14750