What is Simple Interest ?
Simple Interest is the interest calculated on the principal portion of the loan. In simple
Interest, the Interest doesn't compound, meaning that an account holder will only gain interest on the
Principal, and a borrower will never have to pay interest on interest already accrued.
Simple Interest is a quick and easy method of calculating the interest charge on a load.
This type of Interest is usually applies to automobile loans or short-term loans.
The formula is given below:
And the Amount formula is,
where, P = Principal , R = Rate of Interest , T = Time Period