What is simple interest annually?

Hint: Interest is expressed as the fee paid for borrowing money or any other assets where the amount borrowed is known as the principal and the interest is expressed as the percentage rate of the principal.

Complete answer:
In simple words, Interest is the cost of using someone else’s money. When you borrow money from someone you pay the interest and the same way when you lend the money you earn the interest.
There are two common types of the interest are –
Simple Interest
Compound Interest
Simple interest can be calculated by using the formula –
 $ I = \dfrac{{PRT}}{{100}} $
Where, I is the Simple Interest, P is the Principal, R is the rate of the interest and T is the term period.

Note: Generally, the simple interest is the best in terms when you are going to pay the interest since it will cost less than the compound interest. However, the simple interest is not good if you are the one collecting the interest.
Know the difference between the simple interest and the compound interest. In compound interest, the interest is calculated on the basis of both the principal amount or the borrowed amount and the money invested along with the interest added to the sum. To calculate the compound interest, we use formula $ A = P{\left( {1 + \dfrac{R}{{100}}} \right)^T} $ Where A is the amount, P is the Principal amount and R is the rate of interest and T is the term period measured in years.