# How To: Solve simple interest algebra problems

In this math lesson we will learn how to solve problems involving simple interest.

When you deposit money in a savings account, the bank pays you interest at a certain rate called interest rate. There are two types of interest: simple interest and compound interest. In this lesson we will talk about simple interest. We will use the following important formula:

I = prt

I - represents the interest (or the amount of money that the bank will pay you for allowing it to use your savings account).
p – represents the principal (the money you initially deposit)
r – represents the interest rate
t – represents the time in years.

Want to master Microsoft Excel and take your work-from-home job prospects to the next level? Jump-start your career with our Premium A-to-Z Microsoft Excel Training Bundle from the new Gadget Hacks Shop and get lifetime access to more than 40 hours of Basic to Advanced instruction on functions, formula, tools, and more.

• Hot
• Latest