Principal:
The money borrowed or lent out for a certain period is called the principal or the sum.
Interest:
Money paid apart from principal, for using other's money is called interest.
Simple Interest:
If the interest on a sum borrowed for certain period is calculated uniformly over the duration, then it is called simple interest.
Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then
Simple Intereest = P * R/100 * T
P = 100 x S.I./R * T; R = 100 x S.I./P * T
T = 100 x S.I./ P * R
|
