There seems to be a slight confusion in your formula. The correct formulas for simple interest are:

1. Interest Only: $I = P \times R \times T$

2. Total Amount (Principal + Interest): $A = P + (P \times R \times T)$

Where:

• $I$ is the interest.
• $P$ is the principal amount (the initial sum of money).
• $R$ is the annual interest rate (in decimal form).
• $T$ is the time the money is invested or borrowed for, in years.
• $A$ is the total amount (principal + interest).

Example:

If you invest $1,000 at an annual interest rate of 5% for 3 years, let's calculate both the interest earned and the total amount:

1. Interest Only: $I = 1000 \times 0.05 \times 3 = 150$

2. Total Amount: $A = 1000 + 150 = 1150$

So, the interest earned over 3 years is $150, and the total amount after 3 years is $1,150.

Would you like more details or have any questions?

Related Questions:

1. How does simple interest compare to compound interest in terms of growth over time?
2. What factors should be