Simple Interest Formula

Simple Interest

A basic way to figure out the interest on a loan or investment is to use simple interest. It is referred to as "simple" since it is based entirely on the original principal sum and does not account for any potential interest that may have accumulated over time.

Basic Terms in Simple Interest :

P = Principal = the money used for a loan or investment

I = Interest = Money given for using other's money 

R = Rate of Interest = The rate at which interest is charged or earned, expressed as a percentage.

T = Time period = The duration for which the money is borrowed or invested, usually measured in years.

Simple Interest Formula :

Simple Interest ,

 `SI = \frac{P \times R \times T }{100}`

Total Amount = Principal amount + Simple Interest