What is simple interest for principal 3850, interest rate 7, period 4 years

Simple interest is the amount paid or earned on the principal over a set period of time (term).

The following is the formula for calculating simple interest,

Where,

I : Simple interest

p : Principal amount

r : Rate of interest in percentage

t : Time period (in Years)

To calculate the simple interest on the principle amount 3850 with rate of interest 7% for 4 years, let’s first put it in the formula

$\small Simple\;Interest\;(I) = \large \frac{3850\; \times\; 7\; \times\; 4}{100}$

$\small Simple\;Interest\;(I) = \large \frac{ 26950\; \times\; 4}{100}$

$\small Simple\;Interest\;(I) = \large \frac{ 107800}{100}$

$\small Simple\;Interest\;(I) = 1078$

The simple interest for principal 3850, interest rate 7, period 4 years is 1078