Important Formulae on 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