FOLLOW US:

Simple Interest Important Points:

Principal (P): The original sum of money either loaned or deposited. Also known as capital.

Interest (I): The amount of money that you pay to borrow money or the amount of money that you earn on a deposit.

Time (T): The duration for which the money is borrowed/deposited(time always taken in years, if time is given in months then divide by 12 and if time is given by days divide by 365).

Rate of Interest (R): The percent of interest that you pay for money borrowed, or earn for money deposited

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Simple Interest : Formula

Simple Interest (SI) =

P x R x T/100

Where:

P: Principal (original amount)

R: Rate of Interest (in %)

T: Time period (yearly,monthly, half-yearly etc.)

Amount Due at the end of the time period, A = P (original amount) + SI

A  =  P + {

P x R x T/100

}

SI = P.n.i

Where i =

r/100

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Note :    (a) in the case of SI interest will remain same for each and every given year because principle will remain same for all the given years .

   (b) In the case of doubling principle will be equal to interest , so amount = 2 (principle)