Two jugs of lemonade are made. Jug A uses 4 lemons for 10 glasses; Jug B uses 6 lemons for 14 glasses. Whose lemonade is stronger, that is, has more lemon per glass?

When you lend (or borrow) money, the borrower pays the lender extra for the use of the money — that extra is **interest**. **Simple interest** is calculated only on the original principal, not on past interest.

**$\text{SI}=\frac{P\times R\times T}{100}$**

where $P$ = principal (₹), $R$ = rate per annum (% per year), $T$ = time in years.

Example: ₹2000 at 5% for 3 years: SI = $\frac{2000\times 5\times 3}{100}=300$. Total amount $A=2000+300$ = ₹2300.