Simple Interest

P = Principal

R = Rate of interest per annum

T = Time in years

I = Simple interest

then

I = P. R. T / 100

Thus total amount A to be paid at the end of T years = P + I

Example

P = Rs. 500

T = 4 years

R =11%

Find simple interest

I = P x T x R /100

= 500 x 4 x 11/100

= Rs. 220

Calculation using Excel along with formula is given in the following slide:

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