Simple Interest Maths
Posted by
Ravi Kumar at Sunday, April 5, 2009
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When you borrow money from some one he will give you money for interest. Usually money lender calculates simple interest and gives you money.
The interest is calculated only on the principal through out the loan period, it is called simple interest.
Principal or Sum:- The money borrowed or lent out for a certain period is called Principal or the Sum.
Interest:- Extra money paid for using others money is called Interest.
Simple Interest:- If the interest on a sum borrowed for a certain period is reckoned uniformly,then it is called Simple Interest.
Formulae:
Principal = P
Rate = R% per year
Time = T years. Then,
(i)Simple Interest(S.I)= (P*T*R)/100
(ii) Principal(P) = (100*S.I)/(R*T)
Rate(R) = (100*S.I)/(P*T)
Time(T) = (100*S.I)/(P*R)