In this article, we pick up from where we left in the previous article and cover compound interest shortcuts that you can employ in exams. Just click on the below button to view the shortcut method of each topic. We use the basic formula for calculating compound interest. Simple and compound interest formulas are very important as every year significant number of questions are asked in the ibps po banking exam every year. Interest is the fixed amount paid on borrowed money. The difference between simple interest and compound. The extra money paid by the borrower to the lender is. Nov, 2019 find out the differences between simple and compound interest. Simple interest problems and solutions for bank exams. Find the compound interest on 16000 in 2 years, while rate of interest at first year is 3% and for the second year is 4%. The future value tables are widely used in accounting and finance to save time and avoid unnecessary computations. It is different from the simple interest where interest is not added to the principal while calculating the interest during the next period. Aug 11, 2017 simple interest and compound interest learn series hi bankersdaily aspirants, aspirants,there are so many neophyte who are going to attempt the ibps exam first time. Interest is defined as the cost of borrowing money or the rate paid on a deposit to.
May 23, 2018 as soon as you learn compound interest short tricks, you will be able to solve questions in just 5 sec. If the simple interest for a certain sum for 2 yr at 5%pa is 200, then what will be the compound interest for same sum for same period and the same rate of interest. Simple and compound interest is interactive notebook content that helps students to understand the how to calculate interest and how to find the components of the formulas. Simple interest is calculated based solely on a percentage of the loaned amount, while compound interest is calculated based on a percentage of the loaned amount and interest. Find out the differences between simple and compound interest. Compound interest in the real world, simple interest is rarely used. Money borrowed by a borrower or the money lend by a lender is called the principal p. Simple interest and compound interest what is simple interest. Each will contain an agreed upon interest rate, but each will become effective and start earning interest in a sequential time period. A sum of money lent out at simple interest amounts to rs. Then find the balance after the given number of years. Simple and compound interest definitions, explanations.
Simple and compound interest tricks for bank po youtube. We will discuss the concepts of compound interest in this article and we will also understand the approach to solve the questions based on this topic. Compound interest definition, formula, derivation, examples byjus. Compound interest is similar to the simple interest shortcut tricks. Apr 05, 2020 generally, simple interest paid or received over a certain period is a fixed percentage of the principal amount that was borrowed or lent. In finance terms, simple interest is calculated by multiplying the principal amount 100 times the rate 6% times the amount of time lets say 1 year 100. To make the chapter easy for you all, we are providing you all some important short tricks to solve compound interest questions which will surely make the chapter easy for you all. So, here in this article, you will find the basic differences between simple interest and compound interest, which we have. In exams we dont have time to calculate on paper with formulas. We pay interest when we use other peoples money such as when we borrow from a bank or a friend. Simple interest and compound interest mathforallgrades.
We will be using a graphical simulation of bank interest throughout this tutorial. Simple interest and compound interest shortcut tricks pdf. I is one of the easiest topics in cat quantitative section. The difference between compound interest and simple interest for three years is 31. The sum of the principal and interest is called the amount. As we know that same for some time but some cases its different from simple interest. Important short tricks to solve compound interest questions. Simple interest is the easiest type of interest to understand.
Simple and compound interest tricks for bank po study smart. Introduction to simple and compound interest alison. Quantitative aptitudesimple and compound interest key. Simple interest and compound interest problems are very important in all entrance exams. Jun 06, 2017 simple and compound interest formulas are very important as every year significant number of questions are asked in the ibps po banking exam every year. If ben leaves the money in the account for 12 years, how much interest will he earn. Interest is defined as the cost of borrowing money or the rate paid on a deposit to an investor. The interest is added to the principal at the end of each period to arrive at the new principal for the next period. Compound interest objective type questions pdf download. Difference between simple interest and compound interest. So, simple interest is the sum paid for using the borowed money, for a fixed period. There are two ways for a lender to charge interest on a loan, which are the simple interest and compound interest methods. A 5 p1 1 rt where a represents the amount of money in the account at the end of the time period, p is the. In this website we provide few shortcut methods on simple interest and compound interest shortcut tricks.
Starting from basics to covering difficult concepts with theory and sample questions. Suppose a simple interest is levied on an amount for 5 years at a rate of 10% annually. What is the effective rate of return if this investment is compounded semiannually. You can start it by clicking on the following button. When you deposit money into an interest bearing account, or take out a line of credit, the interest that accumulates is added. On the other hand, whenever the interest becomes due for payment, it is added to the principal, on which interest for the succeeding period is reckoned, this is known as compound interest. Interest tutorial in this tutorial we will explore the interest models that are discussed in chapter 6. It includes two activities one notetaking activity and one interactive notebook activity. When the rate % is not same for every year and interest is taken on yearly basis then amount can be calculated as. For example, say a student obtains a simple interest loan. In course 3, students are introduced to compound interest using the formula. Simple interest is one of the easiest but tricky topic in aptitude. Download and learn this formulas pdf will help you, as the most of the questions from.
Mar 04, 2018 sum of principal and interest and is denoted by a. Hi friends, in this post we are about to learn how to calculate simple interest and compound interest with some short tricks. Simple interest and compound interest tricks pdf bankexamstoday. Quantitative aptitude for competitive examinations free. Simple and compound interest formula in hindi pdf download dear students, today we are sharing simple and compound interest formula in hindi pdf download. We cover an extremely useful set of compound interest shortcuts, tips, tricks, and results. The method used to solve the problem will depend on what we are trying to find.
When a person or bank lends money to a borrower, the borrower usually has to pay an extra amount of money to the lender. Simple interest and compound interest for all competitive exams theory. The interest is added to the principal at the end of each period to arrive at the new principal for the next. There are many financial artifices that effectively convert compound to simple interest. When you deposit money into an interestbearing account, or take out a line of credit, the interest that accumulates is added. For condition 1, a sum of money becomes x times in a years.
A sum of money invested at compound interest amounts to 800 in 2yr and 840 in 3yrs. Compound interest, as the name implies, is a little more complicated but this course explains the concept clearly and covers the methods used for calculating compound interest. The interest calculated every year on original principal, i. This pdf is provided to make you the master of the topic. Money borrowed by a borrower or the money lend by a lender is called. Aug 09, 2017 simple interest is one of the easiest but tricky topic in aptitude. As soon as you learn compound interest short tricks, you will be able to solve questions in just 5 sec. Nov 19, 2018 so, simple interest is the sum paid for using the borowed money, for a fixed period. In this free online course you will learn why simple interest is called simple interest, how simple interest is used in daily life and how it is calculated. Compound interest is one of the toughest chapter which leaves candidates a bit confused and most of the aspirants leave these questions untouched. Write a compound interest function to model the situation.
Solving compound interest problems to solve compound interest problems, we need to take the given information at plug the information into the compound interest formula and solve for the missing variable. Learn tricks to solve simple interest and compound. One such technique is to structure a series of annual notes secured by a single mortgage. For example, say a student obtains a simpleinterest loan. Download and learn this formulas pdf will help you, as the most of the questions from this topic can be directly solved from this formulas. Aspirants can downloads quantitative aptitude pdf form below. Interest formulas for simple and compound interests with. Compound interest aptitude questions compound interest is the difference between the original principal and final amount. The time for which it is borrowed or lent is called time period t.
Simple interest formula examples, solutions, videos. The difference between simple interest and compound interest on a sum for 2 years at 8% when the interest is compounded annually is rs. Compound interest tricks learn compound interest with. Oct 03, 2019 we will discuss the concepts of compound interest in this article and we will also understand the approach to solve the questions based on this topic. Simple interest and compound interest formulas for cat pdf. In some cases, of the compound interest, the interest varies.
Previous years questions asked in these exams including shortcuts and tricks to solve these questions. This pdf of simple interest is helpful for your competitive exams like ibps. Both simple interest and compound interest are available in this pdf. Simple interest and compound interest for ssc cgl and ssc chsl. If the compound interest on a certain sum at 16 23% to 3 years is rs. Simple interest and compound interest bank exams today. A total amount accrued in account p amount invested principal r interest rate as a decimal t number of years money is invested simple interest compound interest a p. Questions and formulas related to general interest are available in this subject. Formulas and derived formulas for solving particular problems. Generally, simple interest paid or received over a certain period is a fixed percentage of the principal amount that was borrowed or lent. It is the same interest added to principal for every year. Today i am going to share simple interest and compound interest tricks and shortcuts.
The tutorial will help you understand the concepts of simple, compound, and continuous interest. Aptitude shortcuts and mind tricks to find simple interest and compound interest 1 free download as pdf file. Use the formulae for simple and compound interest given below to check your answers to the exercises on excel worksheets 1 and 2. Quantitative aptitude is most important part of a government examination. Jul 20, 2017 sign in to like videos, comment, and subscribe. Jun 14, 2015 hi friends, in this post we are about to learn how to calculate simple interest and compound interest with some short tricks. Aptitude shortcuts and mind tricks to find simple interest and. Jul 23, 2017 today i am going to share simple interest and compound interest tricks and shortcuts. Simple interest and compound interest sakshieducation. Problems in this topic needs more focus on percentage. There are understandable, simple solutions useful for rrb alp, group d and bank jobs. Similarly, for second, third, fourth and fifth year 10% each.
Iprt and the total amount including interest would be. Simple interest definition, how do you calculate simple interest, what is. Simple interest question and answers with easy solutions in aptitude topic are present here. Now, lets discuss the basic difference between simple interest and compound interest.