SIMPLE INTEREST

What is Simple Interest ?

The interest for an initial amount (investment, loan, etc.,) for a certain period of time is the SIMPLE INTEREST.

How is Simple Interest Calculated?Simple interest is calculated with the formula :

SI = P*N*R 100Where, P = Prinicipal Amount N = Number of Years R = Rate of Interest

Principal

The amount borrowed from someone as a loan or debt is called the principal.

Interest Rate

The rate at which the interest is paid for the initial amount borrowed.

Number of Period in Years

The time period you will take to return the original amount borrowed.

Simple Interest CalculationConsider you have borrowed a sum of Rs. 50,000 from a lender for 2 years at a rate of 2 %. To find SI, substitute all the values in formula, = 50000 * (2/ 100) * 2 = 500 * 2 * 2 = 2000Hence you need to pay Rs.2000 as SI.

Alternatively, you can also find the principal amount, rate of interest and time period with other known values withSimple Interest Calculator

https://www.easycalculation.com/simple-interest.php