Simple Interest Formulas
What is Principle Amount in Simple Interest?
The principle is the base amount that is borrowed or lent for a pre-decided amount or duration of time.
What is interest in Simple Interest?
The extra amount to be paid for borrowing a sum or a duration of time.
The four variables in the formula are:
- SI=Simple Interest
- P=Principal Amount (This the amount invested)
- T=Number of years
- R=Rate of interest (per year) in percentage
Amount = Principle + SI
|Simple Interest =||P x R x T|
|Time =||SI x 100|
|P x R|
|Rate =||SI x 100|
|P x T|
|Principle =||SI x 100|
|T x R|
For different years if there are different rates, then
|Simple Interest =||Principal x||(R1+R2+ R3…..)|
- If sum becomes n times in T yr at simple interest, then the formula for calculating the rate of interest
|Rate of Interest =||100 x||(n – 1)||%|
Ques. A sum of money becomes 4 times in 20 yr at SI. Find the rate of interest?
R =100(4-1)/20 =100*3 / 20 =5*3 =15 5).
- If A sum becomes n times in at a certain rate of interest .then the time taken, in which the same amount will be n times at the same rate of interest?
|Time Taken =||T x||(n – 1)|
Ques.If A sum becomes 3 times in at certain rate of interest in 5years .find the time taken in the same amount will be 8 times at the same rate of interest: =
(8-1)/2*5 = 7/2 * 5 =17.5years