Arithmatical - Simple Interest

CATEGORY

Important Facts and Formulae
1.

Principal :

The money borrowed or lent out for a certain period is called the principal or the sum.
2.

Interest :

Extra money paid for using other’s money is called interest.

3.

Simple Interest (S.I.) :

If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.

Let the principal = P, Rate = R% per annum (p.a) and Time = T years. Then ,

1. S.I. = (P x R x T / 100)

2. P = (100 x S.I. / R x T)

3. R = (100 x S.I / P x T)

4. T = (100 x S.I. / P x R).