Simple interest is a way to figure out interest that is often used in a wide range of financial deals, especially when short-term calculations need to be kept simple.
Simple interest can be used in financial decisions, especially for short-term or basic computations. Example of using simple interest to make financial decisions:
Simple interest is used to predict returns by figuring out how much interest was earned on an initial investment over a certain amount of time.
That's it for simple interest: Interest = Principal * Rate * Time