# Quantitative Aptitude - Simple Interest - Formula & Concept Tutorial

**Principal**

The money borrowed or lent out for a certain period is called principal.

**Interest**

Extra money paid for using other money is called interest.

**Simple Interest (S.I)**

If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called Simple Interest

S.I ( Simple Interest ) =

**P – Principal Amount**

**R – Rate Of Interest Per Annum**

**T - Time In Year**

**A – Amount / Future Value**

**Amount or Future Value that get at the end after investment**

Amount = SI ( Simple Interest ) + P ( Principal ) =