Simple Interest is an important topic to deal with under Quantitative Aptitude, If you are preparing for any competitive exams.

Now let's start the lesson !

When a person borrows some amount from another person or bank,then the borrower pays some extra money during repayment,that extra money paid by borrower is called interest.

**Important Terms Related To Simple Interest :**

**Principal (P):**Money borrowed by the borrower

**Amount (A):**Money to be returned by the borrower.It is the sum of Principal and Interest i.e. Amount = Principal + Interest

**Rate Of Interest (R):**It is the rate at which interest is charged on principal.It is always specified in Percentage(%)

**Time (T):**Period for which the money is borrowed

**Simple Interest (S.I.):**If the interest is calculated on original principal for any length of time

simple interest = ( principal x rate of interest x time ) / 100

**Installments :**If the borrower paid the total amount of money in some equal parts, then it is termed as installments

**Some Basic Simple Interest Formulas :**

- If amount,rate of interest and time is given,then to determine simple interest

we use formula S.I. = A R T / ( 100 + R T )

- If amount,rate of interest and time is given,then to determine principal

we use formula P = 100 A / ( 100 + R T )

- If rate of interest is half - yearly, Rate = ( R / 2 ) % and Time = 2 T

- If rate of interest is monthly, Rate = ( R / 12 ) % and Time = 12 T

- If rate of interest is quarterly, Rate = ( R / 4 ) % and Time = 4 T

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