Simple Interest can be calculated by providing the values for basic amount, the time for which the interest is being calculated, and the interest rate. This Interest is the simplest form of the interest. It depends mainly on the interest rate, the principal amount that is being borrowed and the time period for which the amount is being borrowed.
The Simple Interest Rate Formula is given below:
Interest = amount * Time * (rate/100)
It should be noted that loans which are taken for long durations do not have imply simple interest. Such interests are calculated on compounded basis.