P is the principal amount, $1110.00.
r is the interest rate, 8% per year, or in decimal form, 8/100=0.08.
t is the time involved, 6....year(s) time periods.
So, t is 6....year time periods.
To find the simple interest, we multiply 1110 × 0.08 × 6 to get that:
The interest is: $532.80
Usually now, the interest is added onto the principal to figure some new amount after 6 year(s),
or 1110.00 + 532.80 = 1642.80. For example:
If you borrowed the $1110.00, you would now owe $1642.80
If you loaned someone $1110.00, you would now be due $1642.80
If owned something, like a $1110.00 bond, it would be worth $1642.80 now.
