Mathematics
Simple Interest
Calculate simple interest on a principal amount.
SI = (P × R × T) / 100
Formula Explanation
Simple interest is calculated on the original principal for the entire period.
Variables Explained
P = Principal; R = Annual interest rate in percent; T = Time in years.
Solved Example
Find SI on ₹5,000 at 8% per annum for 2 years.
SI = (5000 × 8 × 2) / 100 = ₹800.