How we worked it out
Updated as you change the numbers.
- I = P × r × t = $5,000.00 × 0.06 × 3 years = $900.00.
Method and assumptions
Simple interest is principal × annual rate × time in years. Months are divided by 12 and days by 365; some lenders use a 360-day year, which gives slightly more interest.
Questions
What is the simple interest on $5,000 at 6% for 3 years?
$5,000 × 0.06 × 3 = $900.
Sources
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.