Terms : Simple Interest
Principal
Principal is the money borrowed by a person.
Interest
The extra money paid by the borrower for using another man's money is called interest.
Rate
The interest obtained on 100 for 1 year is called rate percent per annum.
Simple Interest
If the interest is calculated every year on the original sum borrowed, then the interest is called Simple Interest.
Amount
The sum of principal and S.I. after a specified period of time is called amount.
 S.I. = (P×R×T)/100
where S.I. is simple interest
P is principal
R is rate
T is time
 P = (S.I.×100)/(R×T)
 R = (S.I.×100)/(P×T)
 T = (S.I.×100)/(R×P)
 Amount = Principal + Simple Interest
 To obtain interest for a period with dates count only one of the dates.
 Convert days into years by dividing by 365 whether it is a leap year or not.
 p.a. stands for per annum means for a year.
