Simple Interest When a person borrows money from someone for a specific period, then the borrower has to pay some extra money called Interest on the money borrowed for that period”. The money borrowed is called “Principal” . The total sum of money including the principal is known as the “Amount.” If the interest on the specific sum borrowed for a certain period is calculated uniformly, then it is called “Simple Interest.” To solve simple interest questions and answers, one need to memorize the formulas.

Simple Interest formula:

Suppose, principle = P, rate of interest(%) = R, total time = T.