Simple Interest Formula

Pedro plans to borrow $1,200 from the bank to buy a car, with a plan to repay it in three years. The bank charges 10% simple interest. The video explains how to calculate the interest using the formula I = p * r * t, where I is the interest, p is the principal, r is the interest rate, and t is the time in years. By applying the formula, Pedro's interest is calculated to be $360. Therefore, the total amount Pedro will owe the bank is $1,560, which includes the principal and the interest. The lesson concludes with a recap of how to use the simple interest formula.

What formula is used to calculate simple interest?

What is the total amount Pedro will owe to the bank after three years?