The method used to solve the problem will depend on what we are trying to find. After revising the formulas you will understand the following examples. Let us study some of the differences between simple vs compound interest. Compound interest is the interest that accumulates on the principal amount of money plus any interest that has been earned during the course of a loan, deposit or debt. He invested the remaining in a fund that paid compound interest, interest being compounded annually, for the same 2 years at the same rate of interest received rs. Interest is the fixed amount paid on borrowed money. Simple and compound interest tricks 1 governmentadda. Sbi clerk pre 2018 compound interest tricks part2 maths. This pdf is provided to make you the master of the topic. Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as interest on interest. 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 interest and compound interestmaths for kids mocomi. Formulas and examples, simple and compound interest. Before going to the simple interest and compound interest problems, you should revise the simple and compound interest formulas. The difference between simple interest and compound interest on a sum for 2 years at 8% when the interest is compounded annually is rs. On the basis of these ideas we will learn trick and tips of shortcut simple interest and compound interest. Solved examples with detailed answer description, explanation are given and it would be easy to understand. Whats the difference between simple and compound interest, anyway. Questions and formulas related to general interest are available in this subject. Unlike simple interest, which only accrues on the principal, compound interest accrues on both the principal and interest combined. Here in the learn series we are updating the shortcut method of each topic section wise. Both simple interest and compound interest are available in this pdf. What is the equivalent simple rate of interest for 1. S imple interest and compound interest formula shortcuts pdf, s imple interest and compound interest formula with examples, compound interest questions pdf download, simple and compound interest worksheet pdf, simple interest and compound interest. Hi bankersdaily aspirants, aspirants,there are so many neophyte who are going to attempt the ibps exam first time.
In this video we shall discuss simple interest tricks for sbi clerk pre. Simple interest is rate of interest calculated only on the principal amount, or on that portion of the principal amount that remains. If you are looking for online bank job preparation website in india. The sum lent is called the principal the sum of the principal and interest is called the amount interest. In this video we shall discuss compound interest tricks part2 for sbi clerk pre 2018. So, here in this article, you will find the basic differences between simple interest and compound interest, which we have. With compound interest, interest is added to the principal at predetermined. Compound interest and simple interest solved examples. Simple interest and compound interest problems and. Problems in this topic needs more focus on percentage. Just click on the below button to view the shortcut method of each topic. Bankers adda provide you the best study materials like free mock test pdf, live classes etc. Bankers adda best online bank job preparation website in. Compound interest questions compound interest formula pdf.
Simple and compound interest is a very challenging topic but we somehow use it in our daily life. Simple and compound interest formula in hindi pdf download. Compound interest questions is an an essential part for competitive exams like. Compound interest awesome tricks are discussed in this video by sumit sir for all exams or extra dose subscribe our new channels now 1 adda247. A common application of exponential growth is compound interest. With simple interest, you pay a fixed amount of interest on the money you borrow and the principal does not increase. Learn about simple and compound interest investopedia. The e ective annual rate increases, but not increase.
Recall that simple interest is earned or paid only on the principal. Profit and loss formulas and tricks concepts and tricks video lecture. Compound interest is the interest calculated on the initial principal and the accumulated interest of previous periods of a deposit or loan. If you have a savings account with a bank and deposit some money, the bank will pay you extra money for saving with them. It is an expense for the person who borrows money and income for the person who lends money. Interest may be defined as the charge for using the borrowed money. It makes a deposit or loan grow faster as compared to simple interest. The concept of compound interest is used synonymously with simple interest since it is a more accurate description of the interest amount earned.
Finding p finding i interest rate per period aunt freda leaves thelma a legacysome deposit stock that was invested for ten years at 11% p. Compound interest awesome tricks maths by sumit sir. Simple interest and compound interest shortcut tricks. Formulas for simple interest and compound interest has all important formulas of simple and compound interest that reduce the questions solving time. It is money paid by borrower for using the lenders money for a specified period of time. Simple and compound interest formula in hindi pdf download dear students, today we are sharing simple and compound interest formula in hindi pdf download.
Compound interest, number e and natural logarithm september 6, 20. Simple interest is only based on the principal amount of a loan, while compound interest is based on the principal amount and the accumulated interest. Difference between simple interest and compound interest. Simple interest important formulas aptitude questions.
If you think that how to solve simple interest and compound interest questions using simple interest and compound interest shortcut tricks, then further studies will help you to do so. Interest is calculated as either simple interest or compound interest. 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. Simple interest is calculated on the principal, or original, amount of a loan. Bank c keeps your money at compound interest and offers you 5% interest. Compound interest definition, formula, derivation, examples.
I is one of the easiest topics in cat quantitative section. 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. Basically, the two major criteria to setting interest rates are the riskiness of the investment and what rate is commonly. Ajay invested half of his savings in a mutual fund that paid simple interest for 2 years and received rs. Applications of the compound interest formula quite often, three of the variables used in the compound interest formula are known and the fourth needs to be found. Simple interest and compound interest problems and solutions pdf. If the difference between simple interest and compound interest on a certain sum of money in 2 years at 20 % p. The difference between the compound and simple interest for 3 years will be.
Sbi clerk pre 2018 compound interest tricks part1 maths. Simple interest is one of the easiest but tricky topic in aptitude. So, simple interest is the sum paid for using the borowed money, for a fixed period. Simple interest and compound interest formulas for cat pdf. Simple interest and compound interest questions for. Quantitative aptitude concepts and tricks bankexamstoday. In this video we shall discuss compound interest tricks for sbi clerk pre. How to calculate simple and compound interest dummies. 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. Find out the differences between simple and compound interest. Speed maths compound interest installments tricks youtube. Interest is defined as the cost of borrowing money or the rate paid on a deposit to an investor. 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.
Cat aspirants are required to apply various formulas on simple interest and compound interest to solve various questions. Sbi clerk pre 2018 simple interest tricks maths day 11. The formula for annual interest, including principal sum, is. This pdf is not related to mynotesadda and if you have any objection over this pdf, you can mail us at email protected tags. Simple interest formula examples simple vs compound. This data will be helpful in determining the interest and amount in case of compound interest easily.
For example, 4000 dollars is deposited into a bank account and the annual interest rate is 8%. Sbi clerk pre 2018 simple interest tricks maths day. Simple and compound interest definitions, explanations. Interest formulas for simple and compound interests with. Interest is charged on principal amount at a certain rate for a certain period. Simple interest and compound interest tricks pdf bankexamstoday. Video lecture on approximation technique and tricks pdf. Interest formulas mainly refer to the formulas of simple and compound interests. The sum lent is called the principal the sum of the principal and interest is called the amount interest is of two kinds. This is the aptitude questions and answers section on simple interest important formulas with explanation for various interview, competitive examination and entrance test. In easy words, it can be said as interest on interest. From the data it is clear that the interest rate for the first year in compound interest is the same as that in case of simple interest, ie. This pdf of simple interest is helpful for your competitive exams like ibps po. For example, 10% per year, 4% per quarter or 2% per.
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