Principal :
The money borrowed or lent out for a certain period is called the principal or the sum.
Interest :
Extra money paid for using other’s money is called interest.
Simple Interest (S.I.) :
If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.
Let the principal = P, Rate = R% per annum (p.a) and Time = T years. Then ,
1. S.I. = (P x R x T / 100)
2. P = (100 x S.I. / R x T)
3. R = (100 x S.I / P x T)
4. T = (100 x S.I. / P x R).
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