Finite Math Examples

$p = 7000$ , $r = 7 %$ , $t = 1$

Step 1

Simple interest is calculated on the original principal only. Accumulated interest from prior periods is not used in calculations for the following periods.

$i = p \cdot r \cdot t$

Step 2

Solve the equation for $i$ .

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Step 2.1

Remove parentheses.

$i = p \cdot r \cdot t$

Step 2.2

Multiply $p r$ by $t$ .

$i = p r t$

Step 3

Substitute the known values into the formula.

$i = (7000) \cdot (7 %) \cdot (1)$

Step 4

Simplify the right side.

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Step 4.1

Simplify $(7000) \cdot (7 %) \cdot (1)$ .

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Step 4.1.1

Convert $7 %$ to a decimal.

$i = 7000 \cdot 0.07 \cdot 1$

Step 4.1.2

Multiply $7000 \cdot 0.07 \cdot 1$ .

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Step 4.1.2.1

Multiply $7000$ by $0.07$ .

$i = 490 \cdot 1$

Step 4.1.2.2

Multiply $490$ by $1$ .

$i = 490$