Interest Equation

To calculate interest, use this formula:

I= P * r * t

I= Interest
P= Initial money
r= Interest rate
t= Time

For example, if you stated with $4500 at a 9.5% for six years, the equation would read:

I=(4500)(.095)(6)
I=2565

At the end of six years you will have made $2,565 dollars from your initial investment, totaling $7,065.