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