Simple Interest is a method of calculating interest based solely on the principal sum and does not compound over time. It's calculated as a percentage of the initial amount borrowed or invested for a specific period. Simple interest is often used for short-term loans, savings accounts, or basic financial calculations.

Simple Interest is calculated using the formula:

Where:

• I is the interest
• P is the principal (initial amount)
• R is the annual interest rate
• T is the time period (in years)

The total amount after the interest period is:

Where A is the total amount.

Note: If the time period is given in months or days, it should be converted to years before applying the formula.