# 1. Introduction

In this post, we will explore a Java program to calculate Simple Interest. Simple Interest is a quick method of calculating the interest charge on a loan. It is determined using the formula: Simple Interest (SI) = P * R * T, where:

– P is the principal amount (initial investment or loan amount),

– R is the rate of interest per period,

– T is the time the money is deposited or borrowed for in years.

# 2. Program Steps

1. Define a class named *SimpleInterest*.

2. In the class, define the *main* method.

3. In the *main* method, declare variables for principal (P), rate of interest (R), and time (T).

4. Use the simple interest formula to calculate the simple interest.

5. Print the calculated simple interest.

# 3. Code Program

```
public class SimpleInterest { // Step 1: Define a class named SimpleInterest
public static void main(String[] args) { // Step 2: Define the main method
// Step 3: Declare variables for principal, rate of interest, and time
double principal = 10000; // Initial amount of money
double rate = 0.05; // Rate of interest per period in decimal
double time = 5; // Time in years
// Step 4: Use the simple interest formula to calculate the simple interest
double simpleInterest = principal * rate * time;
// Step 5: Print the calculated simple interest
System.out.println("Simple Interest after " + time + " years: " + simpleInterest);
}
}
```

### Output:

Simple Interest after 5 years: 2500.0

# 4. Step By Step Explanation

– *Step 1:* A class named *SimpleInterest* is defined.

– *Step 2:* The *main* method is defined within the *SimpleInterest* class.

– *Step 3:* Variables for principal (*principal*), rate of interest (*rate*), and time (*time*) are declared and initialized.

– *Step 4:* The simple interest formula is used to calculate the simple interest.

– *Step 5:* The calculated simple interest is printed out.