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TIPS FOR SOLVING QUESTIONS RELATED TO SIMPLE INTEREST:

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

2. Interest: Interest is the sum which is paid for the use of other's money.

3.Simple Interest:Simple Interest is the interest on a sum borrowed for a certain period reckoned uniformly i.e. on initial principal only.

4. Formula for calculating Simple Interest:

If Principal = P, Rate = R% per annum, and Time = T years, then
\begin{aligned}
\text{Simple Interest (S.I.)} = \left( \frac{P\times R\times T}{100}\right) \\
\end{aligned}
\begin{aligned}

\text{Principal (P) } = \left( \frac{100\times S.I.}{R\times T}\right) \\

\text{Rate (R)} = \left( \frac{100\times S.I.}{P\times T}\right) \\

\text{Time (T)} = \left( \frac{100\times S.I.}{P\times R}\right) \\

\end{aligned}

5. If the rate percent is given half yearly or quarterly, then to find the rate percent per annum multiply by 2 or 4 respectively.

6. One ordinary year (1 year) = 365 days.

7. One leap year = 366 days.