It is money paid by borrower for using the lenders money for a specified period of time. The sum of the principal and interest is called the amount. Compound interest question and answers with easy solutions in aptitude topic are present here. In this course, ismaiel kalady will discuss about the basics as well as advanced ideas to solve compound interest problems using amazing shortcut tricks. Compound interest tricks learn compound interest with. Interest is the fixed amount paid on borrowed money. The rate of interest is same for both compound interest and simple interest and it is compounded annually. Simple interest and compound interest shortcut tricks compound interest the difference between the amount and the money borrowed is called the compound interest for given period of time. By solving compound interest problems, you are become expert and used to solve problems based on compound interest formula. It is the interest added to the principal of a loan or deposit, so that the added interest also earns interest.
The method used to solve the problem will depend on what we are trying to find. The interest rate and frequency of compounding which may be yearly, half yearly, quarterly, monthly, daily, etc. Simple interest on a certain sum of money for 3 years at 8% per annum is half. Compound interest is the addition of interest to the principal sum of a loan or deposit. Compound interest t time in years r interest rate per year. But what follows is the quickest way to solve compound interest problems. This type of problem are given in quantitative aptitude which is a very essential paper in banking exam. Simple and compound interest problems with shortcut. Quantitative aptitudesimple and compound interest key. If a certain sum of money invested at compound interest amounts to rs.
If youre seeing this message, it means were having trouble loading external resources on our website. Simple interest and compound interest shortcut tricks pdf. This process is called compounding and can also be referred as interest on interest. Hi friends, in this post we are about to learn how to calculate simple interest and compound interest with some short tricks. How do you solve for time in the compound interest formula. When a person or bank lends money to a borrower, the borrower usually has to pay an extra amount of money to the lender.
Compound interest is one of the toughest chapter which leaves candidates a bit confused and most of the aspirants leave these questions untouched. Compound interest points to remember 1 compound interest. Simple interest and compound interest shortcut tricks. As we know that same for some time but some cases its different from simple interest. Compound interest problems with answers and solutions are presented free practice for sat, act and compass maths tests. Read this article to learn the quickest way to solve compound interest problems. Compound interest is calculated based on the principal, interest rate, and the time period involved. If youre behind a web filter, please make sure that the domains. To compare the effect of nonannual compounding periods on growth, you can set up a worksheet as shown, and calculate future value with the fv function. Here, on this page, we are providing some shortcuts for problem solving related to this formula through which you can get idea of solving and can practice from these problems. Lets look at the quantities in the problem statement. This course will solve all types of ci problems asked in prev kerala psc exams. Compound interest is the difference between the original principal and final amount.
Simple interest compound interest questions for ibps po, sbi po, niacl, nicl, lic, dena bank po pgdbf, boi, bank of baroda and other competitive exams. The simple interest for a certain sum for 2 years at 5 % pa is rs 200, then what will be the compound interest for the same sum for the same period. Most important simplification tricks and techniques. Shortcut tricks to solve compound interest problems solving ci problems using smart tricks. Before going to the simple interest and compound interest problems, you should revise the simple and compound interest formulas. Lets go through some compound interest solved problems and learn how to use and implement compound interest shortcuts in actual problem solving. It is a method for calculating the interest earned or paid on a certain balance in a. Lets solve some problems involving compound interest. Problems on compound interest for ssc chsl and cgl tier 2 exams.
After three years he withdrew the principal amount plus interest and invested the entire amount in another scheme for two years, which earned him compound interest. All questions and answers covered for various competitive exams. If you go by the compound interest formula, the calculation would become very difficult. Many banking exams include questions based on compound interest, which can be a little tricky and timeconsuming. Simple interest and compound interest problems shortcuts. This is a crash course for compound interest questions with shortcuts and tricks, using simple formulas so that you can cover all important types of questions for this topic. While solving compound interest problems in percentage method, always we have to assume the principal amount p is 100% and compound interest ci is calculated based on time and rate of interest. In exam you could also find problems that involve both simple and compound interest. Compound interest problems shortcuts with solved examples. We have free practice compound interest sums, shortcuts.
In exams we dont have time to calculate on paper with formulas. Compound interest problems with solutions for bank exams. These two sums can be related by the following formula. Simple interest and compound interest problems are very important in all entrance exams.
In the first two articles for compound interest, we have covered the important concepts for this topic. Compound interest solved problems using compound interest shortcuts. Compound interest shortcuts and tricks ci formulae. We use the basic formula for calculating compound interest. Find the amount to be paid back on a loan of find the. After revising the formulas you will understand the following examples. Shortcut tricks are very important things in competitive exam.
The concept behind this calculation is equivalent rate of interest. If the interest is calculated once a year then the interest is called simpl e interest. Find out the difference between compound interest and simple interest for the sum of 0 over 2 years period. Compound interest is similar to the simple interest shortcut tricks. The above examples are just few types based on compound interest, there could be numerous others complex and difficult questions that could come in the cat exam. Shortcut tricks on simple interest and compound interest are one of the most important topics in exams. Problems on calendar, basics and methods, shortcuts, time and date duration. The interest calculated on the amount initially invested or loaned.
When interest is calculated on the original principal for any length of time, it is called simple interest. This formula applies when interest is earned on an annual basis and the interest is earned once a year. The compound interest formula is used to solve financial problems related to price or numbers. Shortcut tricks to solve problems on compound interest formula. Simple interest plays a key role in interest and investment problems. Compound interest aptitude test, questions, shortcuts. The formulas given below will be useful to solve problems on simple interest. Simple interest and compound interest basic concepts and.
Compound interest is a great thing when you are earning it. Compound interest is very significant topic in todays world. In this section, we are going to learn, how to solve problems on simple interest step by step. Compound interest questions or problems with solutions, covered for all bank exams, competitive exams, interviews and entrance tests. Important short tricks to solve compound interest questions.
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. Compound interest formulas, shortcuts and practice problems. The short cut method will help you save time and reduce calculations so you score higher. If the difference between simple interest and compound interest on a certain sum of money in 2 years at 20 % p. There are understandable, simple solutions useful for rrb alp, group d and bank jobs. Here, on this page, we are providing some shortcuts for problem solving related to this formula through which you can get idea of solving and. Learn and practice problems on compound interest with easy explaination and shortcut tricks. This will save about a minute of your time, allowing you to solve an extra question and boost your score and percentile. Tips tricks and shortcuts on compound interest and simple. Hindi problems on compound interest with shortcuts. Remember, till the time you actually solve questions using these tricks, you wont be able to memorize and understand them.
A sum of money invested at compound interest amounts to 800 in 2yr and 840 in 3yrs. 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. Few examples on simple interest and compound interest shortcuts is given in this page below. Lets get started and cover some of these shortcuts. Here in this page we give few examples on compound interest shortcut tricks. In this article, we shift our focus from concepts to compound interest tricks. Top important aptitude shortcuts combo october 12, 2017. Simple interest for two years is 1200 and interest for one year is 600. The focus of this article is purely to explore different compound interest tricks, shortcuts and results that can be used to solve problems quickly. A sum of money placed at compound interest becomes x time in a years and y times in b years. And in compound interest, the total amount would be 31. If rate of interest is r1% for first year, r2% for second year and r3% for third year, then. Problems on compound interest shortcuts for problem.
If you walk into a bank and open up a savings account you will earn interest on the money you deposit in the bank. In the formula, a represents the final amount in the account after t years compounded n times at interest rate r with starting. Malayalam tricks to solve problems on compound interest. If you know time management then everything will be easier for you. Practise unlimited quant quizzes based on different math topics and prepare for upcoming bank and ssc exams ipbs clerk mains, syndicate bank po, sbi po 2018, ssc cgl tier 2, ssc cgl 2018, etc. Attempt compound interest quiz online for bank and ssc exams. In some cases, of the compound interest, the interest varies according to time.
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