Simple Interest

Interactive Simple Interest Calculator

Principal (P)

Rate % (R)

Time Years (T)

(a) Define simple interest.

(b) What does R represent in the formula?

(c) Calculate the interest based on the values above.

(a) Definition:
Simple interest is the cost of borrowing money or the return on investment, calculated only on the original principal amount.

(b) Representation:
In the formula, \(R\) represents the Rate of Interest per period (usually per annum).

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(c)

Given:

Formula:

\[ I = \frac{P \times T \times R}{100} \]

Calculation: