Simple Interest

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Learn about simple interest and how to calculate simple interest at https://www.easycalculation.com

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SIMPLE INTEREST:

SIMPLE INTEREST

What is Simple Interest ?:

What is Simple Interest ? The interest for an initial amount (investment, loan, etc.,) for a certain period of time is the SIMPLE INTEREST.

How is Simple Interest Calculated?:

How is Simple Interest Calculated? Simple interest is calculated with the formula : SI = P*N*R 100 Where, P = Prinicipal Amount N = Number of Years R = Rate of Interest

Principal:

Principal The amount borrowed from someone as a loan or debt is called the principal.

Interest Rate:

Interest Rate The rate at which the interest is paid for the initial amount borrowed.

Number of Period in Years:

Number of Period in Years The time period you will take to return the original amount borrowed.

Simple Interest Calculation:

Simple Interest Calculation Consider you have borrowed a sum of Rs. 50,000 from a lender for 2 years at a rate of 2 %. To find SI, substitute all the values in formula, = 50000 * (2/ 100) * 2 = 500 * 2 * 2 = 2000 Hence you need to pay Rs.2000 as SI.

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Alternatively, you can also find the principal amount, rate of interest and time period with other known values with Simple Interest Calculator https://www.easycalculation.com/simple-interest.php

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