Simple Interest Questions Answers Formulas, Tips and Tricks

• 1. Simple Interest Formula

  
  

  1. What is Principal: The money borrowed or lent out for a certain period is called the principal or the sum.
  
  2. What is Interest: Extra money paid for using other's money is called interest.
  
  3. What is Simple Interest: If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.
  
  4. Simple Interest Formula:
  
  Let Principal = P, Rate = R% per annum and Time = T years. Then,
  
  \begin{aligned}
  \text{Simple Interest (S.I.)} = \left( \frac{P\times R\times T}{100}\right) \\
  \end{aligned}
  
  We can also calculate Principal, Rate and Time using above formula as,
  
  \begin{aligned}
  
  \text{P } = \left( \frac{100\times S.I.}{R\times T}\right) \\
  
  \text{Rate } = \left( \frac{100\times S.I.}{P\times T}\right) \\
  
  \text{Time } = \left( \frac{100\times S.I.}{P\times R}\right) \\
  
  \end{aligned}

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Simple Interest Questions Answers