Formulae for Simple Interest

1. Principal:
   The money borrowed or lent out for a certain period is called the principal or the sum.
2. Interest:
   Extra money paid for using other's money is called interest.
3. Simple Interest (S.I.):
   If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple 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