BANKING AFFAIRS

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: -To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is “Simple Interest = Principal x Interest Rate x Time."

Detailed explanation-3: -Here’s the simple interest formula: Interest = P x R x T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).

Detailed explanation-4: -The simple interest formula states that interest is equal to the principal times the rate times the time. Interest lets you gain value over time. I=PRT.

Detailed explanation-5: -Simple interest – interest that is calculated using the formula Interest=(Principal)× (Rate)× (Time). This formula often is abbreviated I=PRT. If the time is equal to one year, the formula becomes I=PR.