Definition of Simple Interest
What is simple interest?
Answers
When money is borrowed, interest is charged for the use of that money for a certain period of time. The money you save and put in the bank is used for some period of time by the bank and then return to you. When the money is paid back, the principal and the interest is paid back. The amount of interest depends on the interest rate, the amount of money borrowed and the length of time that the money is borrowed. Simple interest is the interest paid only on the principal about borrowed. No interest is paid on the interestaccured during the term of deposit.
Interest is defined as the additional amount that is paid by the borrower in addition tto the principal amount to the moneylender.
Simple Interest is defined as the Interest in which the principal remains the same throughout.
SI=(PRT)/100
The net amount paid by the borrower is the sum of the principal amount and the simple Interest.