The Simple Interest Calculator calculates the interest and end balance based on the simple interest formula.
| End Balance: | $26,000.00 |
| Total Interest: | $6,000.00 |
Calculation steps:
| Total Interest = | $20000 × 3% × 10 |
| = | $6,000.00 |
| End Balance = | $20000 + $6,000.00 |
| = | $26,000.00 |
Simple interest = principal × rate × time. Interest is earned only on the original principal, never on earlier interest, so it grows in a straight line.