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Simple Interest - ( Arithmetic Aptitude)

  1. Principal: The money borrowed or lent out for a certain period is called theprincipalor thesum.
  2. Interest: Extra money paid for using other's money is calledinterest.
  3. Simple Interest (S.I.): If the interest on a sum borrowed for certain period is reckoned uniformly, then it is calledsimple interest. Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then
    (i). Simple Intereest = P x R x T
    100
    (ii). P = 100 x S.I. ; R = 100 x S.I. and T = 100 x S.I. .
    R x T P x T P x R