Simple Interest & Interest

[Explain this!]

I have seen two formulas/calculations for simple interest. They are as follows:

I = P*R*T and S.I. = (P*R*T)/100

What is the difference between the two? I am familiar with I = P*R*T but not S.I. = (P*R*T)/100. When would S.I. = (P*R*T)/100 be used?

 

[Deleted member 4993]

I have seen two formulas/calculations for simple interest. They are as follows:

I = P*R*T and S.I. = (P*R*T)/100

What is the difference between the two? I am familiar with I = P*R*T but not S.I. = (P*R*T)/100. When would S.I. = (P*R*T)/100 be used?

In those two equations - R is represented in two different units.

In the first equation, 'R' would be indicated as 0.05 (for 5% - for example)

For the same problem, if you want to use the second equation - for R you would use 5 (for 5%).

 

[Explain this!]

Thank you for the reply! I understand now. 5% is also 5/100. The denominator, 100, is needed to express the rate 5 or (R) as a percentage.