Simple Interest Formulas

Principal or sum: 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: If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called simple interest.

Important Simple Interest Formulas:

Let Principal – P Rate = R % per annum and Time = T years. Then,

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