Introduction

In the name of Allah, Most Gracious, Most Merciful
This topic explains the basis for calculating the simple interest charged using ordinary interest. The formula I = PRT will be useful for understanding the concept of simple interest. Once the method of calculating simple interest is learned, students will be able to understand how much to pay at maturity when loan is taken. Similarly, students would learn how to find the principal, interest rate, or time for a loan, through the following formula of I=PRT .