Simple Interest is the interest When some money is borrowed by someone then borrower is required to pay an additional amount of money other than the original sum. 8000 x 1 x 009. R 2 10 T 2 3 years.
Here P 3000 r 7.
It makes a deposit or loan grow faster as compared to simple interest. In easy words it can be said as interest on interest. To convert months into years we have to divide the given months by 12. From the details given in the problem Principle P 8000 and R 9 or 009 expressed as a decimal.