SIMPLE INTEREST

When we see “4% interest on car loans”, “3% EMI rate”, etc. on banners or in advertisements, that 4% and 3% is called the interest. There are two branches of calculating interest: Simple Interest and Compound Interest. In this chapter, we will study only simple interest.  Simple interest is as important chapter as profit and loss in our daily life as well as in business. Through this chapter we will learn the concept of interest, principal amount, loan repayment time and total amount repayable for loan.