1. Principal: The money borrowed or lent out for a certain period is called the principal or the sum. 2. Interest: Extra money paid for using other's money is called interest. 3. Simple Interest (S.I.) : If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called simple interest. Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then, (i) S.I. = (P*R*T )/100 (ii)P=(100*S.I)/(R*T) ;R=(100*S.I)/(P*T) and T=(100*S.I)/(P*R)

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1. Principal:The money borrowed or lent out for a certain period is called theprincipal or the sum.

2. Interest:Extra money paid for using other's money is called interest.3. Simple Interest (S.I.) :If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called simple interest.Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then,

(i) S.I. = (P*R*T )/100

(ii)P=(100*S.I)/(R*T) ;R=(100*S.I)/(P*T) and T=(100*S.I)/(P*R)