Simple Interest Interest is earned only on principal. Example:Compute simple interest on $100 invested at 6%per year for three years. 1st year interest is S6.00 2nd yearinterest is S6.00 3rd year interest is $6.00 Total interest earned:$18.00 THE COURSE OF FINANCE 2017 SPRING SJTU 6-6Simple Interest  Interest is earned only on principal.  Example: Compute simple interest on $100 invested at 6% per year for three years.  1st year interest is $6.00  2nd yearinterest is $6.00  3rd year interest is $6.00  Total interest earned: $18.00 THE COURSE OF FINANCE 2017 SPRING SJTU 6-6