explain simple intrest with all formulas
Share
explain simple intrest with all formulas
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
When a person lends money to a borrower, the borrower usually has to pay an extra amount of money to the lender. This extra money is what we call the interest. We can express this interest in terms of the amount that the borrower takes initially. If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called simple interest or the flat rate. Before starting the formula for the simple interest, let us first state some terms that we will use in the formula.
Simple Interest = (P × R × T) ÷ 100
Amount = SI + P
A = {(P × R × T) ÷ 100} + P
Where
SI=Simple Interest
A=Amount/Future Value
P=Principal Amount
R=Rate of Interest per annum
T=Time in years