Simple Interest formulas

Interest is a type of fee paid for assets and money which are borrowed for some time.

Interest is paid as a fee or compensation for the depreciation of money or degradation of assets.

And Simple interest is a method of calculating Interest in which the borrower pays lender a certain percent fee of the original value borrowed, every year or month.

Some importation formulas related to simple interest are:

Simple Interest Formulas:

1. To calculate the total simple interest (S.I.) on a principle amount (P) at a certain rate per annum ( R), after  a certain years of time(T) is calculated using formula:

$S.I. = \dfrac{P\times T\times R}{100}$

2. If Amount (A) is the total amount to be paid to the lender at the end of lending term , Principal (P) is the total money lend from the lender , Interest (I) is the total interest accumulated , Rate of Interest (R) is the rate of interest per annum and Time (T) is the total time in years for which money is lend then,

$A = P +I = P \times \left( \dfrac{100+RT}{100}\right)$

3. If “P” is the total principal or money lend , “A” is the total amount to be paid to lender at the end of lending term , “R” is the rate of interest per annum and “T” is total lending term in years then:

$P = \dfrac{100 \times A}{RT + 100}$

4. When , “T” is total lending term in years , “I” is the total Simple Interest accumulated in time “T” , “P” is the total principal lend and “R” is the rate of interest per annum then:

$T = \dfrac{100 \times I}{PR}$

5. To find the Rate of interest We can use following formula:

$R= \dfrac{100 \times I}{PT}$

Where, “R” is rate of interest , “I” is interest rate ,”P” is total principal and “T” is total time.

6. We can also calculate Principal amount by using formula:

$P = \dfrac{100 \times I}{TR}$

Where, “I” is rate of interest , “T” is total , “R” is rate of interest.

Please note that , In all of the above formulas , The unit of rate of interest (I) and Time (T) should be corresponding , for example if “R” is the rate on interest per month then “T” should be in months , If “R” is rate of interest per annum then “T” should be in Years.

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