Simple interest

D EFIN ITIO N
Any money lent or borrowed is called

PRINCIPAL amount
The charge made for its use is called
INTEREST
The additional money paid by the
borrower to the lender after a
specified period of time is called
INTEREST

 INTEREST depends up on
The principal amount
The length of time for which it is

borrowed

FO RM U LA
SIMPLE INTEREST=

PXRXT

-------------100
P= PRINCIPAL AMOUNT
R= RATE OF INTEREST
T= TIME DURATION

 INTEREST is usually paid at fixed

intervals
yearly, half yearly, quarterly or monthly

If the simple interest for any given

time is added to the principal the

sum is called the AMOUNT at simple
interest for that time

 In simple words the total amount

paid by the borrower to the lender is

called AMOUNT

THANK YOU FOR

READING