Principal : The money borrowed or lent for a certain period is called Sum or Principal .
Interest : The extra money paid for the money borrowed is termed as Interest.
Simple Interest :Interest paid on principle amount for certain period of time is termed as simple interest.
Where P is Principle, T is Number of years, R is Rate of Interest .
Rule : Simple Interest for D number of days, If P is Principle amount and R is Rate.
Ex. Mohan borrowed some money at the rate of 5 % p.a. for the first two years, at a rate of 8 % p. a for the next three years, and at the rate of 10 % for the period beyond five years.. If he pays total interest of Rs. 12500 at the end of 8 years, how much mony did he borrows ?
Solution : Let P be the sum borrowed
Interest : The extra money paid for the money borrowed is termed as Interest.
Simple Interest :Interest paid on principle amount for certain period of time is termed as simple interest.
Rule : Simple Interest for D number of days, If P is Principle amount and R is Rate.
Solution : Let P be the sum borrowed
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