Simple interest is a way to calculate the interest charged or earned on a principal amount over a period of time. It is calculated using the formula:

$\text{Simple Interest (SI)} = \frac{P \times R \times T}{100}$

Where:

• $P$ is the principal amount (the initial amount of money)
• $R$ is the rate of interest per year (as a percentage)
• $T$ is the time the money is invested or borrowed for, in years

Example:

Suppose you invest $1,000 at an annual interest rate of 5% for 3 years. The simple interest would be calculated as follows:

$\text{SI} = \frac{1000 \times 5 \times 3}{100} = 150$

So, the interest earned over 3 years would be $150.

Would you like more details or have any questions?

Here are five related questions you might find useful:

1. How does simple interest differ from compound interest?
2. How can the time period in simple interest be adjusted for months or days?
3. What are the real-world applications of simple interest?
4. How does changing the interest rate affect the simple interest?
5. Can you calculate simple interest for different currencies?

Tip: Simple interest is often used in scenarios where the interest isn't compounded, like in certain loans or short-term investments.