Simple Interest is mostly used in the baking sector to calculate the interest on loans. The formula used to find the simple interest is **SI = p * n * r **

Where **p** stands for Principal Amount, **n** stands for Number of years and **r** stands for Rate of interest

For example, suppose we take a loan of the amount **10000** with an interest rate of **10%** for **1** year. Then calculating the simple interest by the formula** (p*n*r)/100** gives (**10000 * 10 * 1) / 100 = 1000.** so we have to give **1000** as interest for **1** year.

Now apply this logic in the php programming language. We accept the values for the principal amount, interest rate, and time in years using the function in php language. Then we calculate the interest by using the formula **( p * n * r ) / 100**.

In this program, we are using the direct method to calculate the Simple Interest which is using the formula. First, we have to accept the Principal Amount, Number of years, and Rate per annum from the user and assign it to variables **p, n, r **and use the formula **(p * n* r) /100 **and assign the result into variable **si. **And print the value of the variable **si **as the simple interest.

**Step 1:** Accept the Principal Amount, Number of years, and Rate per annum into the variables **p, n, r**

**Step 2:** Assign the computed value of **'(p * n * r) / 100'** into the variable **si**

**Step 3:** Print the value of the variable **si** as the simple interest

` ````
<?php
$p = readline("Enter the Principal Amount: ");
$n = readline("Enter the Number of years: ");
$r = readline("Enter the Rate per Annum: ");
$si = ($p * $n * $r) / (100);
echo ("Simple Interest is: $si");
?>
```

Enter the Principal Amount: 25000 Enter the Number of years: 2 Enter the Rate per Annum: 10 Simple Interest is: 5000