Simple interest is whereby when an amount of money is borrowed,the person who borrows the money must pay back the original amount + interest.The amount paid back is dependent on the amount borrowed,the interest rate,how long the money is borrowed.Therefor, the formula for finding Interest is Interest=Borrowed Money x Interest Rate x Time.
For example, if a person borrows $1000 with an interest rate of 20% for 5 years,the amount of money would be $1000+($200x 5 years)=$2000. Of course nobody does charge an interest of 20% nowadays.
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