## Simple Interest

If throughout the loan period, the interest is charged on the original sum (principal) borrowed, it is called simple interest.

## Simple Interest Terms

P = Principal.

R = Rate of interest.

T = Time.

S.I = Simple interest.

## Simple Interest Formulas

(i) S.I | = | P x R x T |

100 |

(ii) P | = | S.I x 100 |

R x T |

(iii) R | = | S.I x 100 |

P x T |

(iv) T | = | S.I x 100 |

P x R |

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