BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Simple interest is calculated with the following formula: S.I. = P × R × T, where P = Principal, R = Rate of Interest in % per annum, and T = Time, usually calculated as the number of years. The rate of interest is in percentage r% and is to be written as r/100.

Detailed explanation-2: -The interest rate is the amount a lender charges a borrower and is a percentage of the principal-the amount loaned. The interest rate on a loan is typically noted on an annual basis known as the annual percentage rate (APR).

Detailed explanation-3: -An APR is your interest rate for an entire year, along with any costs or fees associated with your loan. That means an APR presents a more complete picture of what you’ll pay for the loan each year.

Detailed explanation-4: -Principal is the money that you originally agreed to pay back. Interest is the cost of borrowing the principal.

Detailed explanation-5: -The per annum interest rate refers to the interest rate over a period of one year with the assumption that the interest is compounded every year. For instance, a 5% per annum interest rate on a loan worth $10, 000 would cost $500. A per annum interest rate can be applied only to a principal loan amount.