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Principal:
The money borrowed or lent out for a certain period is called the principal or the sum.

Interest:
Extra money paid for using other's money is called interest.

Simple Interest (S.I.):
If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.
Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then
(i). Simple Intereest = 

P x R x T 

100 
(ii). P = 

100 x S.I. 

; R = 

100 x S.I. 

and T = 

100 x S.I. 

. 
R x T 
P x T 
P x R 

