IMPORTANT FACTS AND FORMULAE OF SIMPLE INTEREST

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 a 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)                 S.I. =  (P*R*T )/100

  (ii)        P=(100*S.I)/(R*T) ;R=(100*S.I)/(P*T) and T=(100*S.I)/(P*R)