How to calculate the simple interest on a loan (Business Math)

To see a calculator for loans on simple interest, see: http://matrixlab-examples.com/simple-interest-formula.html

To download the presentations, go to: http://www.slideshare.net/matrixlab/simple-interestformula

This is an explanation on how to calculate simple interest on a loan. Simple interest is generally charged for borrowing money for short periods of time.

You have to know in advance: 1- The principal 2- The interest rate per year 3- The time in years.

I = Prt A = P(1+rt)

The amount is the sum of your principal and the calculated interest.