how to solve simple interest chapter
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Simple Interest (SI)
If the interest on a sum borrowed for certain period is calculated uniformly, it is called simple interest(SI). (fix percentage of principal)
What is Principal (sum)
Principal (or the sum) is the money borrowed or lent out for a certain period. It is denoted by P.
What is Amount?
The Addition of Simple Interest and Principle is called the Amount.
A = S.I + P ( Principle )
Interest
Interest is the extra money paid by the borrower to the owner (lender) as a form of compensation for the use of the money borrowed calculated on the basis of Principle.
Time
This is the duration for which money is lend / borrowed.
Rate of Interest
It is the rate at which the interest is charge on principal.
What is Per annum means?
"Rate of interest R% per annum" means that the interest for one year on a sum. If not stated explicitly, rate of interest is assumed to be for one year.
Formulas Need to Remember
S.I =[( P X R X T )/( 100 )].
Where P = Principle, R = Rate of per annul, T = Number of years
From the above formula , we can derive the followings
P=(100×SI)/ RT
R=(100×SI)/ PT
T=(100×SI)/ PR
If the interest on a sum borrowed for certain period is calculated uniformly, it is called simple interest(SI). (fix percentage of principal)
What is Principal (sum)
Principal (or the sum) is the money borrowed or lent out for a certain period. It is denoted by P.
What is Amount?
The Addition of Simple Interest and Principle is called the Amount.
A = S.I + P ( Principle )
Interest
Interest is the extra money paid by the borrower to the owner (lender) as a form of compensation for the use of the money borrowed calculated on the basis of Principle.
Time
This is the duration for which money is lend / borrowed.
Rate of Interest
It is the rate at which the interest is charge on principal.
What is Per annum means?
"Rate of interest R% per annum" means that the interest for one year on a sum. If not stated explicitly, rate of interest is assumed to be for one year.
Formulas Need to Remember
S.I =[( P X R X T )/( 100 )].
Where P = Principle, R = Rate of per annul, T = Number of years
From the above formula , we can derive the followings
P=(100×SI)/ RT
R=(100×SI)/ PT
T=(100×SI)/ PR
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