Question

Which of the following is the correct formula to calculate the total amount in simple interest?

• A. Principal amount $-$ Simple interest
• B. Principal amount $\times$ Simple interest
• C. Principal amount $+$ Simple interest
• D. Principal amount $÷$ Simple interest

Answer 1

The correct option is C Principal amount $+$ Simple interest

Principal: The principal is the amount that initially borrowed.

Simple interest: Interest computed on the original principal amount of the loan.

Amount: When a person takes a loan from a bank, he/she has to return the principal borrowed plus the interest amount, and this total returned is called Amount.

We get the total amount by adding the simple interest to the principal.
$\therefore$ Total amount = Principal amount $+$ Simple interest