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Arithmetic Aptitude :: Simple Interest

Simple Interest - Important Formulas

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  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 Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then

    (i). Simple Intereest = \(\left(\frac { P\times R\times T } { 100 }\right)\);      
     
     
    (ii). P =       \(\left(\frac { 100\times S.I } { R\times T }\right)\); R = \(\left(\frac { 100\times S.I } { P\times T }\right)\);       and T =\( \left(\frac { 100\times S.I } { P\times R }\right)\);       .