Interest is the extra amount of money that has to paid for any loan or an investment. In the other word interest is the extra money paid along with the borrowed money. The interest are of two types, simple interest and compound interest. Below given interest formulas are used to find the simple interest and compound interest of any amount of money.
1. Simple Interest: The interest paid at the end of the period.
R = Rate per annum,
T = Time.
2. Compound Interest: It also calculates the accumulated interest of prior periods along with the initial principa l.