formula of principal, amount, interest and simple interest
Answers
Step-by-step explanation:
Calculating the amount that you need to pay or receive after a certain period based on the interest is vital. Simple Interest Formula is the easiest method of calculating interest on the principal amount and works in the following situations.
When you have borrowed money: If you have taken money from the Bank or your friends and family, you need to pay extra payment of interest along with the borrowed amount. SI formula can help you to calculate the cost of borrowing in the form of Interest.
When you lend money: If you have given money to someone, then you can earn Interest Income in exchange for making money available to them. With the Simple Interest formula, you can get a clear picture of extra income in the form of Interest.
When you invest money: Individuals who have invested their surplus money in investment schemes such as Fixed Deposit, Recurring Deposits etc. also receive attractive interests on their investments and can calculate such Interest Income with Simple Interest.
Answer:
SIMPLE IMTEREST =PRINCIPAL×NUMBER OF YEARS×RATE/100
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