Aptitude :: Simple Interest

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 Intereest =		P x R x T
		100

(ii). P =

100 x S.I.

; R =

100 x S.I.

and T =

100 x S.I.

.

R x T

P x T

P x R