Simple Interest
- Formula / Rule
- Simple Interest
- Topic
- Arithmetic
- Formula
$$\text{SI} = \frac{P \times R \times T}{100}$$
$$\text{Amount} = P + \text{SI}$$
Where:
- $P = \text{Principal}$
- $R = \text{Rate of interest per annum } (%)$
- $T = \text{Time in years}$
- When to Use
- Calculating interest on loans or investments where interest is not compounded.
- Worked Example
Q: Find the simple interest (SI) on $\text{NPR } 10,000$ at $8%$ per annum for $3$ years.
$$\text{SI} = \frac{10000 \times 8 \times 3}{100} = \text{NPR } 2,400$$ $$\text{Amount} = 10000 + 2400 = \text{NPR } 12,400$$