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Smart Money · Simple Words · India

Glossary pe wapas jao
Basics

Simple Interest Kya Hai? — Matlab, Definition & Example

Definition

Simple interest sirf original principal amount pe calculate hota hai, compounding nahi hota. Formula: SI = (P × R × T) / 100.

💡 Real Example

₹1 lakh at 8% simple interest for 3 years = (1,00,000 × 8 × 3) / 100 = ₹24,000 interest. With compound interest, it would be ₹25,971.

🇬🇧 English Mein (Simple Interest)

Simple interest is calculated only on the original principal amount, without compounding. Formula: SI = (P × R × T) / 100 where P is principal, R is rate per annum, T is time in years. Used in some loans and short-term deposits.

❓ Common Questions

Simple Interest kya hai simple words mein?
Simple interest sirf original principal amount pe calculate hota hai, compounding nahi hota. Formula: SI = (P × R × T) / 100.
Simple Interest ka ek example do?
₹1 lakh at 8% simple interest for 3 years = (1,00,000 × 8 × 3) / 100 = ₹24,000 interest. With compound interest, it would be ₹25,971.
Simple Interest ko English mein kya kehte hain?
English mein ise Simple Interest kehte hain. Simple interest is calculated only on the original principal amount, without compounding. Formula: SI = (P × R × T) / 100 where P is principal, R is rate per annum, T is time in years. Used in some lo