What is simple interest

Explanation

Simple interest

In everyday life, the term ‘interest’ is applicable in home loans, personal loans, car loans, banking, finance, etc. Students should know how to calculate interest for which this chapter would discuss it. We would also study interest calculation as well as interest formula. Further, we would also concentrate on the interest rate along with examples so that it does not make you get confused at all.

Generally, the cost of using somebody else’s money is termed as interest.  You need to pay interest when you borrow money. On the other hand, you earn interest when you lend money. While calculating interest, there are different ways where some methods prove to be more beneficial for lenders. It is an annual rate in which the amount is usually quoted. You can find Simple Interest in the sectors of finance, banking, automobile, etc.

How much do you pay or earn in interest?

...