Find compound interest tricks math shortcut tricks. Here in the learn series we are updating the shortcut method of each topic section wise. Today, we are going to discuss a very interesting topic simple and compound interest. Compound interest solved problems using compound interest shortcuts. Instead of putting formulas and doing long calculation you can use the short tricks according to given percentage. Find simple interest based question shortcut tricks on simple interest are one of the most important topics in exams. Simple interest quantitative aptitude tutorial with easy tricks, tips, short cuts. 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.
Simple interest and compound interest tricks youtube. Various applications and formulas based on this concept are explained here. Compound interest is the addition of interest to the principal sum of a loan or deposit. 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. In this video i am discussing the smartest approach to solve simple interest without using. We cover an extremely useful set of compound interest shortcuts, tips, tricks, and results. Aptitude questions and answers for freshers on simple and compound interest. Compound interest shortcuts compound interest ci questions can be solved in less than 20 secs using these smart and shortcut tricks on compound interest. Compound interests formulas and shortcuts tricks question paper. In easy words, it can be said as interest on interest. Remember, till the time you actually solve questions using these tricks, you wont be able to memorize and understand them.
Simple compound interest questions answers problems online. Lets go through some compound interest solved problems and learn how to use and implement compound interest shortcuts in actual problem solving. The time for which it is borrowed or lent is called time period t. Today i am going to share simple interest and compound interest tricks and shortcuts. 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. Select the currency from the dropdown list this step is optional. Sici questions for sbi poclerk, rbi grade b, syndicate bank, bob, ippb. Simple interest and compound interest for all competitive exams theory. The difference between compounding interest and simple interest.
We have provvided useful formulae and hints for compound interest category. Simple interest can be defined as the interest charged on the total principal amount taken for a particular period of time. Since simple interest is calculated only on the principal amount of a loan or deposit, its easier to determine than compound interest. Compound interest points to remember 1 compound interest. Requesting you to refer below points before taking any ci test. For example, 4000 dollars is deposited into a bank account and the annual interest rate is 8%. Basic concepts and tricks for solving cat questions.
You can view this simple and compound interest test question details at the end of the. Simple interest compound interest quantitative aptitude. Simple interest refers to an interest that is calculated as a percentage of the principal amount, whereas compound interest refers to an interest which is calculated as a percentage of principal and accrued. Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period. Find simple interest based question math shortcut tricks. For condition 1, a sum of money becomes x times in a years. Tips and tricks and shortcuts for simple interest problems. Interest formulas mainly refer to the formulas of simple and compound interests. While calculating compound interest, the simple interest which is calculated for the principal of first year will add to the principal which we taken already. These mcqs are also very helpful to solve quantitative aptitude problems in various competitive exams like upsc, nda, bank po etc.
Simple interest and compound interest problems are very important in all entrance exams. Simple interest and compound interest shortcuts with examples. Formulas for simple interest and compound interest problems. Simple interest aptitude test, questions, shortcuts, solved.
Simple interest and compound interest problems shortcuts. Simple interest and compound interest shortcut tricks pdf. Tips and tricks and shortcuts for compound interest. It is a method for calculating the interest earned or paid on a certain balance in a. Compound interest here we have sample solved questions, tests, tips, tricks and formulae on. This crt training tutorial delivered by our trainer sub. Under simple interest system, the interest is computed only on principal amount whereas under compound interest system, the interest is computed on principle as well as on accumulated interest. In every competitive exam ibps bank exams, sbi clerks, ssc, insurance exams, quantitative aptitude section is important and some questions 1 or 2 problems will be asked from simple interest and compound interest, so learn some shortcuts in solving these type of problems.
In exam you could also find problems that involve both simple and compound interest. Find the principal if it is known that the interest is compounded annually. Consider the following example for the explanation of this point. The simple interest earned on a certain amount is double the amount when invested for 10 years. The compound interest on a sum of rs 576 is rs 100 in two years. Simple interest aptitude test, questions, shortcuts, solved example. Simple interest and compound interest basic concepts and. Compound interest is very significant topic in todays world. Interest is defined as the cost of borrowing money or the rate paid on a deposit to an investor.
Compared to compound interest, simple interest is easier to calculate and easier to understand. 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. Both simple interest vs compound interest are popular choices in the market. By the end of it, we shall be familiar with the basic formulas used for the calculation of simple and compound interest and their practical applications. Simple and compound interest aptitude basics, practice questions, answers and. There are understandable, simple solutions useful for rrb alp, group d and bank jobs. Simple interest is calculated by multiplying the daily interest rate by the principal by the number of days that elapse between payments. Compound interest and simple interest solved examples. Apr 05, 2020 interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan. Basically, the two major criteria to setting interest rates are the riskiness of the investment and what rate is commonly. This type of problem are given in quantitative aptitude which is a very essential paper in banking exam. The interest at which compound interest accumulates depends on the frequency.
Our calculator allows the accurate calculation of simple or compound interest accumulated over a period of time. What total amount will he get at the end of 3 years. Difference between simple interest and compound interest. Compound interest or normal amortization is calculated on the amount of the loan plus any accumulated unpaid interest from previous periods. Simple interest and compound interest difference tricks part.
Tips and shortcuts for simple interest and compound interest. Watch the video and learn everything a beginner needs to know from what is excel, to why do we use, and what are the most important keyboard shortcuts, functions, and formulas can be used to illustrate the large differences between simple interest and compound interest payments. How to calculate simple interest and compound interest. After three years, in simple interest, the total amount would be 0 and in compound interest, the total amount would be 31. The rule of 72 is defined as a shortcut or rule of thumb used to. Our program is formed in 2015 and is backed by the ngo satyamev. Simple interest formula prt compound interest formula ap1rnnt what is the difference between simple interest and compound interest.
Simple and compound interest tips and tricks and shortcuts. The interest, typically expressed as a percentage, can be either simple or compounded. Shortcut tricks on simple interest and compound interest are one of the most important topics in exams. Simple and compound interest definitions, explanations. This fixed period may be a year, six months, three months or a month and correspondingly the rate of interest is charged annually, half yearly, quarterly or monthly. The sum of the principal and interest is called the amount. Simple and compound interest problems with solutions pdf download. Compound interest question with solution free pdf compound interest ci question asked in previous year exam. Simple and compound interest calculator good calculators.
Compound interest problems with solutions for bank exams. The rate of interest is same for both compound interest and simple interest and it is compounded annually. Mar 04, 2018 today, we are going to discuss a very interesting topic simple and compound interest. Compound interest t time in years r interest rate per year. Typically, the amount of interest is expressed as a certain fraction or percentage, of the principal amount. Quantitative aptitudesimple and compound interest key. It is the interest added to the principal of a loan or deposit, so that the added interest also earns interest this process is called compounding and can also be referred as interest on interest. In simple interest, the total amount would be 0 and in compound interest, the total amount would be 31. Find out the differences between simple and compound interest. Simple vs compound interest is not hard to understand. This is the aptitude interview questions and answers section on simple interest with explanation for various interview, competitive examination and entrance test. If you know time management then everything will be easier for you. For example, the rate of interest is 10% per annum means the interest payable on rs 100 for one year is rs 10.
Where, a final amount including interest, p principal amount, r annual interest rate as decimal, n number of compounds per year, t number of years. Shortcuts for calculating compound interest sehpaathi. Compound interest aptitude test, questions, shortcuts. Its important to have at least a basic understanding of how a company or bank determines the interest rate you earn on your money on deposit. Simple and compound interestsimple and compound interest. Home sales and investments calculators simple and compound interest calculator. Compound interest is difference between the original principal and final amount is called compound interest ci. How to calculate simple and compound interest dummies.
Simple interest also known as us rule is when interest is charged only on the loan amount or principal balance. If you have a temporary loan or one with interest that doesnt compound, youll only have to worry about interest added onto the outstanding principal balance. Compound interest aptitude test, questions, shortcuts, solved. This mock test having 15 question, with four choices. The difference between compound interest and simple interest on a certain sum of money at 10 % per annum for 3 years is rs. Simple interest and compound interest shortcuts with examples in every competitive exam ibps bank exams, sbi clerks, ssc, insurance exams, quantitative aptitude section is important and some questions 1 or 2 problems will be asked from simple interest and compound interest, so learn some shortcuts in solving these type of problems.
If the simple interest on a certain sum of money is 425 of the sum and the rate. Shortcut tricks on simple interest are one of the most important topics in exams. Few examples on simple interest and compound interest shortcuts is given in this page below. Simple interest shortcut, tips and tricks simple interest formula, simple interest math, simple interest class 7, simple interest aptitude, simple interest and compound interest in hindi, simple. Simple interest aptitude interview questions and answers by 10. Simple, compound, and continuous interests main concept interest is the price paid for the benefit of borrowing money for a certain period of time. Interest formulas for simple and compound interests with. Jul, 2017 shortcuts for calculating compound interest. Here is a shortcut trick for calculation of compound interest for 2 and 3 years. Learn about simple and compound interest investopedia. Simple interest aptitude interview questions and answers learn in 30 seconds. Formulas for simple interest and compound interest.
Simple interest and compound interest problems are very important in all. Simple interest vs compound interest top 8 differences. Aptitude made easy simple interest part 2, basics and methods, shortcuts, tricks duration. In this video youll learn the questions based on the difference between simple interest and compound interest. Simple interest and compound interest shortcut tricks pdf download links are given at the end of the post. Quantitative aptitudesimple and compound interest key notes.
Video on compound interest shortcuts, tips and tricks. By using this simple trick on simple interest problems, we can able to solve any to any problem in this topic and get answers very quickly than using normal methods. It is similar to simple interest shortcut tricks as we know that same for some time but some cases its different from simple interest, in case of compound interest the interest is vary according to time but the first year it is. When interest is calculated on the original principal for any length of time, it is called simple interest. Simple interest and compound interest complete concept with. Few examples on simple interest shortcuts is given in this page below. 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.
Nov, 2019 find out the differences between simple and compound interest. So, then we need to find compound interest using formula. Simple interest and compound interest problems and solutions pdf. The interest calculated on the amount initially invested or loaned. Simple interest aptitude interview questions and answers. Jan 08, 2018 practice simple and compound interest problems. Tips and tricks and shortcuts for compound interest to find the rate of interest, time period, principal question 1. Whats the difference between simple and compound interest, anyway. Compound interest aptitude compound interest questions.
Find out the difference between compound interest and simple interest for the sum of 0 over 2 years period. It makes a deposit or loan grow faster as compared to simple interest. Money borrowed by a borrower or the money lend by a lender is called the principal p. If rate of interest is r1% for first year, r2% for. Compound interest question and answers with easy solutions in aptitude topic are present here. Simple interest and compound interest shortcut tricks. Related searches to simple interest aptitude interview questions and answers simple interest and compound interest tricks simple interest shortcuts simple interest short tricks simple interest problems for bank exams simple interest problems with solutions for bank exams simple interest for banking simple interest questions for bank exams problems on simple interest and compound interest for. Basically, simple interest is interest paid on the original principal only while compound interest is interest paid not only on the principal, but also on the interest previously earned. First of all let us discuss the traditional method of solving simple interest question using the formula given below. Just click on the below button to view the shortcut method of each topic. When a person or bank lends money to a borrower, the borrower usually has to pay an extra amount of money to the lender.
Welcome to the lets study together online free pdf section. Compound interest shortcut tricks math shortcut tricks. Very useful for freshers, engineers, software developers taking entrance exams. Now, here are some shortcut tricks for simple interest s. Tips tricks and shortcuts on compound interest and simple. Compound interest is the interest calculated on the initial principal and the accumulated interest of previous periods of a deposit or loan. Find the amount to be paid back on a loan of find the. Compound interest question pdf for ssc, railway exam. Compound interest is calculated based on the principal, interest rate, and the time period involved.
The following formula can be used to find out the compound interest. The simple interest earned on a certain amount is double the. Simple compound interest questions answers problems, simple and compound interest problem comes under reasoning. Aug 11, 2017 simple interest and compound interest learn series. If the total simple interest from both the fractions in 3 years was rs.
Jul 23, 2017 today i am going to share simple interest and compound interest tricks and shortcuts. Hi bankersdaily aspirants, aspirants,there are so many neophyte who are going to attempt the ibps exam first time. Aptitude made easy simple interest part 1, basics and. May 31, 2016 simple interest and compound interest is very famous and high frequency topic of bank po and sbi po exam. In exams we dont have time to calculate on paper with formulas. 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. Simple and compound interest formulae, concepts and shortcuts. 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.
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