Simple Interest Basics, Formula

SIMPLE INTEREST
Basic terms associated with this topic:
Interest : It is the time value of money. It is the cost of using capital.

Principal : It is the borrowed amount.
Amount : It is the sum total of Interest and Principal.

Rate : It is the rate percent payable on the amount borrowed.

Period: It is the time for which the principal is borrowed.

Simple interest : Simple Interest is
payable on principal.

Basic formulas related to Simple Interest
Simple Interest (SI) =( P × R × T ) ÷ 100
Here P = principal, R = rate per annum, T = time in years

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