Simple and Compound Interest Formulas

1. Simple Interest (SI)

$SI = \frac{P \times R \times T}{100}$

Simple interest is calculated using the principal amount (P), rate of interest per annum (R), and time (T) in years.

$A = P + SI$

Total amount (A) is the sum of the principal (P) and the simple interest (SI).

$A = P \times (1 + \frac{R}{n \times 100}) {(n \times T)}^{1}$

Compound interest is calculated on the principal and accumulated interest over time, where $n$ is the number of compounding periods per year.

$CI = A - P$

Compound interest (CI) is the difference between the total amount (A) and the principal (P).

$A = P \times (1 + \frac{R}{200}) {2 \times T}^{1}$

For half-yearly compounding, the annual rate (R) is halved, and the time (T) is doubled.

$A = P \times (1 + \frac{R}{400}) {4 \times T}^{1}$

For quarterly compounding, the annual rate (R) is divided by 4, and the time (T) is multiplied by 4.

$Difference = CI - SI$

The difference between compound and simple interest on the same principal, rate, and time.