Exercise: Simple Interest Calculator

Background/Motivation

Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments. It is commonly used in short-term loans and simple financial applications.

The Task

Implement a function simple_interest(principal: float, rate: float, time: float) -> float that calculates simple interest using the formula: $$I = \frac{P \times R \times T}{100}$$ where: - $P$ is the Principal amount. - $R$ is the Annual interest rate (in percent). - $T$ is the Time (in years).

Specifications

Function Name: simple_interest
Arguments: principal (float), rate (float), time (float)
Return Type: float
Expected Output: The calculated simple interest.

Constraints

$0 \le \text{principal}, \text{rate}, \text{time} \le 10^9$

Example

>>> simple_interest(1000, 5, 2)
100.0
>>> simple_interest(500, 3.5, 1)
17.5

Instructions

Open exercises/simple_interest/solution.py.
Implement the simple_interest function.
Change SUBMIT = False to SUBMIT = True at the top of the file when you are ready to be graded.
Run python solution.py locally to verify your solution with the built-in self-tests.