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Simple Interest Calculation Program in C

Introduction

Simple Interest (SI) is a basic concept in finance that helps calculate the interest on a principal amount over a period of time at a given rate of interest.

The formula is:

SI=(P×R×T)/100

where

• P = Principal (initial amount)
• R = Rate of Interest (per annum, in %)
• T = Time (in years)

This program asks the user to input P, R, T and then calculates the Simple Interest.

C Program: Simple Interest Calculation

#include <stdio.h>
 
int main() {
    float principal, rate, time, simple_interest;
 
    // Input principal, rate, and time
    printf("Enter Principal amount: ");
    scanf("%f", &principal);
 
    printf("Enter Rate of Interest (in %%): ");
    scanf("%f", &rate);
 
    printf("Enter Time (in years): ");
    scanf("%f", &time);
 
    // Calculate Simple Interest
    simple_interest = (principal * rate * time) / 100;
 
    // Display result
    printf("Simple Interest = %.2f\n", simple_interest);
 
    return 0;
}

 
OUTPUT 1 :
Enter Principal amount: 1000
Enter Rate of Interest (in %): 5
Enter Time (in years): 2
Simple Interest = 100.00

OUTPUT 2 :
Enter Principal amount: 2500
Enter Rate of Interest (in %): 7.5
Enter Time (in years): 3
Simple Interest = 562.50

Explanation

1. The program asks the user for principal, rate, and time.
2. Formula applied: (P × R × T) ÷ 100.
3. The result is printed with two decimal places.