When calculating the simple interest the interest rate will be always over the present value (value borrowed). Formula:
I= interest value;
PV= present value;
i= interest rate, always in percentage (x/100);
n= number of periods.
Whats the interest obtained when applying a $100,00 hat a simple interest rate of 5% a month during 10 months?
I= 100 . 0,05 . 10 = 100 . 0,50 = R$50,00