Question

What is the formula to calculate simple interest?

Answer 1

The formula for simple interest.

Let $P,r\mathrm{and}t$ 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.
  $\mathrm{Simple}\mathrm{Interest}=\frac{P\times r\times t}{100}$.

Hence, simple interest is $\mathrm{S}.\mathrm{I}=\frac{P\times r\times t}{100}$ .