Today, we are going to discuss a very interesting topic Simple and
It deals with the money matters. By the end of it, we shall be
familiar with the basic formulas used for the calculation of simple
and compound interest and their practical applications.
Various terms to be used along with their general representation
It is money paid by borrower for using the lender's money for a
specified period of time. Denoted by I.
The original sum borrowed. Denoted by P.
Time is a period for which the money is borrowed. Denoted by n
Rate of Interest
Rate at which interest is calculated on the original sum. Denoted
Sum of Principal and Interest and is denoted by A.
The interest calculated every year on original principal, i.e. the sum
at the beginning of first year. It is denoted by SI.
SI = Pnr