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Question

What is the formula to calculate simple interest?


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Solution

The formula for simple interest.

Let P,randt denote principal amount, rate of interest, and time period respectively.

  • The principal refers to the amount borrowed or invested at the outset.
  • The rate at which the principal amount is given to someone for a set of time periods is called the rate of interest.
  • Time is the amount of time for which the principal amount is handed to someone.
    SimpleInterest=P×r×t100.

Hence, simple interest is S.I=P×r×t100 .


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