Simple Interest Formula

1. What is Principal: The money borrowed or lent out for a certain period is called the principal or the sum.

2. What is Interest: Extra money paid for using other's money is called interest.

3. What is Simple Interest: If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.

4. Simple Interest Formula:

Let Principal = P, Rate = R% per annum and Time = T years. Then,

\begin{aligned}
\text{Simple Interest (S.I.)} = \left( \frac{P\times R\times T}{100}\right) \\
\end{aligned}

We can also calculate Principal, Rate and Time using above formula as,

\begin{aligned}

\text{P } = \left( \frac{100\times S.I.}{R\times T}\right) \\

\text{Rate } = \left( \frac{100\times S.I.}{P\times T}\right) \\

\text{Time } = \left( \frac{100\times S.I.}{P\times R}\right) \\

\end{aligned}