Question 693846

Simple interest is calculated  on  the original principal only.

{{{Simple_ Interest = p * i * n}}}

where:
    {{{p}}} = principal (original amount borrowed or loaned)
    {{{i}}} = interest rate for one period
    {{{n}}} = number of periods 

so, if you have a loan of ${{{p=2720}}} at {{{i=14}}}% annually for {{{n=3}}} years, you will pay:

${{{Simple_ Interest = p * i * n}}}

${{{Simple_ Interest=2720(14/100)*3}}}

${{{Simple_ Interest=2720*0.14*3}}}

${{{Simple_ Interest=380.8*3}}}

${{{Simple_ Interest=1142.4}}}