ThePrismSolutions
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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