Question

How are principal and interest calculated?

Answer 1

Formula to calculate the principle :

$\mathit{P}\mathbf{=}\frac{\mathbf{100}\mathbf{}\mathbf{\times }\mathbf{}\mathbf{S}\mathbf{I}}{\mathbf{R}\mathbf{}\mathbf{\times }\mathbf{}\mathbf{T}}$

And

Formula to calculate the Simple interest :

$\mathit{S}\mathit{I}\mathbf{=}\frac{\mathbf{P}\mathbf{}\mathbf{\times }\mathbf{}\mathbf{R}\mathbf{}\mathbf{\times }\mathbf{}\mathbf{T}}{\mathbf{100}}$

Where,

$SI=$Simple Interest

$P=$ Principal Amount

$R=$ Interest rate (in percentage)

$T=$ Time (in years).