23UCM02 2 1Year Bcom Unit 2 Simple interest SimSimple Interest Formula The formula for simple interest helps you find the interest amount if the principal amount, rate of interest and time periods are given. Simple interest formula is given as: Where SI = simple interest P = principal R = interest rate (in percentage) T = time duration (in years) In order to calculate the total amount, the following formula is used: Amount (A) = Principal (P) + Interest (I) Where, Amount (A) is the total money paid back at the end of the time period for which it was borrowed. The total amount formula in case of simple interest can also be written as: A = P(1 + RT) Here, A = Total amount after the given time period P = Principal amount or the initial loan amount R = Rate of interest (per annum) T = Time (in years) Click here to get the simple interest calculator for quick computations. Simple Interest Formula For Months The formula to calculate the simple interest on a yea...