What is Simple Interest ?
Simple Interest is the Interest which calculated on the principal amount or the original contribution to a savings. Simple Interest does not compound that means borrower will never pay interest on interest .
Principal amount - Money borrowed for a certain period of time (P).
Rate of Interest- Extra Amount paid for borrowed money. or rate of interest at which the principal amount is given (R).
Time- Duration for which the Principal is given (T)
Amount- Principal + Interest amount or Principal + Simple Interest.
How to Calculate Simple Interest ?
To calculate the Simple Interest we need a formula and that is
Simple Interest (S.I) = P × R × T / 100
Formula To calculate the Simple Interest -: S.I = PTR/100
Formula To calculate the Principal Amount -: P = (S.I × 100) / RT
Formula To calculate the Rate of Interest -: R = (S.I × 100)/ PT
Formula To calculate the Time -: T = (S.I × 100) / PR
Formula To calculate the Amount -: Principal + S.I (Simple interest)
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