**Category : **8th Class

Simple interest is the interest calculated on the original principal for a given fixed time in which the accumulated interest from previous period is not added up to the previous principal. Simple interest is normally used for a single period.

**Simple Interest** \[=\frac{P\times R\times T}{100}\]

**Where,**

**P** = Principal (original amount borrowed or loaned)

**T** = Time periods

**R** = The rate of interest charged over the principal

**Amount**

When interest is added to the principal, the value is called amount.

It is denoted by A.

Mathematically,

**Amount** = Principle + Interest, or A = P + I

**Conversion Relations**

The various parameters we can be calculated from the relation for the simple interest.

**Formula of Time:** \[T=\frac{I\times 100}{P\times R}\]

**Formula of Principal:** \[P=\frac{I\times 100}{T\times R}\]

**Formula of Rate:** \[R=\frac{I\times 100}{P\times T}\]

*play_arrow*Introduction*play_arrow*Simple Interest*play_arrow*Compound Interest

You need to login to perform this action.

You will be redirected in
3 sec

Free

Videos

Videos