Aptitude::Simple Interest

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Important Formulas

 

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.

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 and Time = T years. Then

(i) Simple Intereest (S.I.) = (P * R * T)/100     

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