Simple Interest - Facts and Formulae
1. Principal :The money borrowed or lent out for a certain period is called the principal or the sum.
2. Interest :Extra money paid for using other’s money is called interest.
3. Simple Interest (S.I.) :If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.
Let the principal = P, Rate = R% per annum (p.a) and Time = T years. Then ,
1. S.I. = (P x R x T )/ 100)