Excerpt from A New Method of Computing Interest From Four Per Centum to Twelve Per Centum: Short and Easy Method
Simple Interest is a sum paid for the use of money and is computed only on the principal at the specified rate.
Legal rate per cent, is the rate per cent. Established by law. The legislature of each state makes its own law and can change the rate per cent., to suit the demand and supply of money. To compute interest we must have principal, time and rate per' Cent.
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