SIMPLE INTEREST

INTEREST : The amount paid by the borrower for using the money of the lender.
 It is denoted by 'I'.
             Interest are two types.
    (1). SIMPLE INTEREST
    (2). COMPOUND INTEREST.

PRINCIPLE : The amount given by the lender to the borrower. It is denoted by 'I'.

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

P- Principal amount
T- Time period
R- Rate of Interest

Ex: P=1000
        T=2yrs
        R=10%
S.I =(PTR)/100
    =(1000*2*10)/100
    =200
We can calculate the amount by adding the S.I to Principal amount.
Therefore formula for Amount= S.I + Principal

From the above example:
amount=  200 + 1000
Total amount = 1200.


If the rate of interest is calculated half yearly then the formula is

Here T=2T , because time is calculated for every six months so time will be double in a year.

S.I = (2*P*T*R)/100

For the above example if Time calculated half yearly then the Interest will be

S.I = (2 * 1000 * 2 * 10 )/  100
S. I= 400

So the amount will be 400+1000=1400





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