Simple interest can be defined as the interest charged on the total amount of principal taken for a particular period of time.
Interest is only charged based on the use of funds. Calculating simple interest is fairly straightforward and is the fastest way to calculate interest.
[tex]\begin{gathered} I=P\cdot r\cdot t \\ A\to\text{Total amount} \\ P\to\text{Principal amount} \\ I\to\text{interest amount} \\ r\to\text{rate of the intererst per year in decimal} \\ t\to\text{time in years} \end{gathered}[/tex]Total amount of money inverted:
[tex]\begin{gathered} A+B_{}=250.000 \\ \\ \end{gathered}[/tex]Total interset earne