how to calculate simple interest for class 5.

Simple Interest is a type of interest calculation where the interest is calculated only on the initial principal amount. It is a straightforward and easy-to-understand concept, widely used in various financial transactions, such as loans, deposits, and investments.
Key Features
1. *Interest Calculation*: Interest is calculated only on the initial principal amount.
2. *No Compounding*: Interest is not compounded, meaning it is not added to the principal amount to calculate future interest.
3. *Fixed Interest Rate*: The interest rate remains fixed throughout the investment or loan period.
Real-World Applications
1. *Loans*: Simple Interest is used to calculate interest on personal loans, car loans, and mortgages.
2. *Deposits*: Simple Interest is used to calculate interest on savings accounts, fixed deposits, and certificates of deposit.
3. *Investments*: Simple Interest is used to calculate returns on investments, such as bonds and treasury bills.
Benefits
1. *Easy to Understand*: Simple Interest is a straightforward concept, easy to understand and calculate.
2. *Predictable Returns*: Simple Interest provides predictable returns, making it easier to plan and budget.
3. *Low Risk*: Simple Interest investments typically carry low risk, making them suitable for conservative investor