Question

write a short note on simple interest in four points​

Answer 1

Answer:

Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments

• Simple interest is calculated by multiplying the daily interest rate by the principal, by the number of days that elapse between payments.
• Simple interest benefits consumers who pay their loans on time or early each month.
• Auto loans and short-term personal loans are usually simple interest loans.

Step-by-step explanation:

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Answer 2

1. Simple Interest (S.I.) is the method of calculating the interest amount for a specific principal amount of money at some rate of interest.

2.Simple interest is calculated with the following formula: S.I. = P × R × T

• P = Principal (the borrowed amount)
• R = Rate of Interest in % per anum
• T = The rate of interest is in percentage r% and is to be written as r/100.

3. In simple interest, the principal amount is always the same, unlike compound interest where we add the interest of previous years' principal to calculate the interest of the next year.

4. Simple interest is paid only on the original amount borrowed.When the money is given for loan, the person who borrows the money generally pays a fixed rate of interest on the principal for the time period the person keeps the money.

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