1 / 4

Understanding Simple Interest: Key Facts and Important Formulae

Simple interest is a basic financial concept where the extra money paid for using someone else's money is calculated uniformly over time. The principal, or the sum borrowed or lent, serves as the base amount. The formula for calculating simple interest (S.I.) is given as S.I. = (P x R x T) / 100, where P is the principal amount, R is the rate of interest per annum, and T is the time period in years. The formulas for finding principal, rate, and time based on simple interest can also be derived from this equation.

orsin
Télécharger la présentation

Understanding Simple Interest: Key Facts and Important Formulae

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Simple Interest Important Facts and Formulae

  2. Principal :: The money borrowed or lent out for a certain period is called the principal or the sum. 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.

  4. Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then (i). Simple Interest = [(P x R x T)/100] (ii). P = [(100 x S.I.) / (R x T)] (iii) R= [(100 x S.I.) / (P x T)] (iv) T = [(100 x S.I.) / (P x R)]

More Related