The formula for simple interest is where I is the amount you will pay in interest, r is the rate at which interest will accrue, P is the principal (amount borrowed), and m is the number of times the interest is applied.

Kindly check explanation

Step-by-step explanation:

The simple interest formula (I) is the product of the principal, interest rate and the number of times interest is applied

Mathematically,

Simple interest (I) = principal(p) * rate(R) * time (t)

For instance, if a principal amount of $200 is borrowed at a rate of 5% per annum for 3 years. The simple interest on the amount borrowed will be :

Simple interest = $200 * 5% * 3

Simple Interest = $200 * 0.05 * 3

Simple Interest = $30