The formula for calculating simple interest is A = P x R x T. Here's how the simple interest formula looks if the initial deposit is $1,000, the annual interest rate is 4% and the number of years is ...

Interest is the cost of borrowing money or the rate paid on a deposit. Learn the difference between simple and compound interest, plus how it impacts your finances.

One simple formula can help you estimate investment growth, understand compounding and measure the impact of inflation.