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Study Guide: GMAT Exam: A Simple Guide To Solving Word Problems - Simple Interest
Source: https://www.fatskills.com/gmat/chapter/gmat-exam-a-simple-guide-to-solving-word-problems-simple-interest

GMAT Exam: A Simple Guide To Solving Word Problems - Simple Interest

By Fatskills Exam Guides Team — the exam nerds behind 28,500+ quizzes and 2.1M practice questions across 500+ global exams.

⏱️ ~1 min read

Simple interest is I = Prt, where I is the simple interest accumulated on a principal, P, at a simple interest rate, r, per time period for t time periods.

 

For example, the simple interest earned on an investment of $10,000 at a 2% annual simple interest rate for 5 years is
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Put units that follow the word per in a denominator.
 



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