Simple Intrest Concept
Posted by
Ravi Kumar at Monday, September 5, 2011
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Principal or Sum:
The money borrowed or lent out for a certain period is called Principal or the Sum.
Interest:
Extra money paid for using others money is called Interest.
Simple Interest:
If the interest on a sum borrowed for a certain period is reckoned uniformly,then it is called Simple Interest.
Formula:
Principal = P
Rate = R% per annum
Time = T years. Then,
(i)Simple Interest(S.I)= (P*T*R)/100
(ii) Principal(P) = (100*S.I)/(R*T)
Rate(R) = (100*S.I)/(P*T)
Time(T) = (100*S.I)/(P*R)