Simple interest is a method to calculate the interest on a loan amount. It is calculated by multiplying the interest rate by the principal by the number of years that is between payments.
Simple Interest Formula:
SI = (P*T*R)/100
Where,
P is the principle amount
T is the time duration
R is the rate of interest
Example:
A person took a loan of 6500 INR for a duration of 5 years at an interest of 10% Per annum.
SI = (P*T*R)/100
Where
P= 6500 INR
T= 5
R= 10%
6500x5x10/100
=3250 INR
Published By : Laxmi S Yadahalli
