Simple Interest Formulas, Shortcuts and Study Material
Simple Interest Formulas - Page 2
Simple Interest Online Test - Page 3
Simple Interest Video Lecture - Page 4
Interest is the cost of borrowing money.An interest rate is the cost stated as a percent of the amount borrowed per period of time, usually one year.
Simple Interest: Simple interest is calculated on the original principal only.Accumulated interest from prior periods is not used in calculations for the following periods. Simple interest is normally used for a single period of less than a year, such as 30 or 60 days.
Simple interest =
P = principal (original amount borrowed or loaned)
R = interest rate for one period
T = number of periods
Principal: The money borrowed or lent out for a certain period is called the principal or the sum.
Interest: Extra money paid for using other's money is called interest.
Simple Interest (S.I.): If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.
Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then
(i) Simple interest=