### Simple Interest and Compound Interest Shortcut Tricks

What is Interest?
When Borrowed some money from other for the personal or commercial purpose we pay some additional money to him after a certain period of time is called Interest. So we can also called this Interest as Simple Interest.

What is Principle?
The money borrowed for a certain time period called Principle or Sum.

What is Amount?
The Addition of Simple Interest and Principle is called the Amount.
A = S.I + P ( Principle ).
S.I = A ( Amount ) - P ( Principle ).

What is Per annum means?
Per annum means For a year.

P = Principle
R = Rate of per annum
T = Number of years

When we Add Simple Interest into Principle.It becomes into Amount.

Formulas Need to Remember
S.I =( P X R X T / 100 ).
Here, P = Principle.
R = Rate per annum.
T = Number of years.

Formula:
In case S.I ( Simple Interest ), T ( Number of years ) and R (Rate per annum ) are given in Question then we can easily find the Principle or Sum.
P = ( S.I X 100 / R X T ).

Formula:
In case S.I ( Simple Interest ), T ( Number of years ) and P ( Principle ) are given in question then we can easily find the R (Rate per annum ).
R = ( S.I X 100 / P X T ).

Here is some Simple interest and Comound interest sub link of Examples which help you better understanding.

More Shortcut tricks on Simple and Compound Interest