**Simple Interest**

I = Prt,

where p is the principal;

r is the annual interest rate;

t us the time in years.

Example:-

To bye furniture for a new apartment, Jennifer Wall borrowed 5000 at 8% simple interest for 11 months. How much interest will she pay ?

Solution:-

From the formula, I = Prt, with P = 5000, r = .08, and t = (in years). The total interest she will pay is

I = 366.67.