Simple Interest and Compound Interest - SSC Guide
Simple Interest (SI)
Formula
SI = (P × R × T)/100
Where:
P = Principal
R = Rate of interest per annum
T = Time in years
Amount = Principal + SI
Compound Interest (CI)
Formula
CI = P[(1 + R/100)^T - 1]
Amount = P(1 + R/100)^T
When compounded half-yearly:
A = P(1 + R/200)^(2T)
Solved Example
Question: Find SI on ₹5000 at 10% for 2 years.
Solution:
SI = (5000 × 10 × 2)/100 = ₹1000
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