Simple Interest is the interest on principal when we do not see the next year interest or include for calculation of such interest.
Calculation of Simple interest is very easy:-
Formula of Simple Interest =Principal Amount X Rate/100 X time
Or
S.I.= P x R/100 x t
For example :-
Ram gives the loan to sham Rs. 10000 for 5 years @ 10 % simple interest
Calculate simple interest .
Solution:
Simple Interest = P x R/100 x t =10000 x 10/100 x 5 = RS .5000 /-
