July 14, 2017

Simple Interest & Compound Interest - Quantitative Aptitude for IBPS, SBI, RBI exams

Simple Interest & Compound Interest - Quantitative Aptitude for IBPS PO, IBPS Clerk, SBI PO, SBI Clerk, RBI, CSAT, SSC, LIC, NICL exams


Interest is like consideration given by a borrower of money to the lender for the use of the mony borrowed or lent.

Terminoloy


→ Principal, P = sum of the money deposited or loaned
→ Interest, I = money paid by the borrower calculated on the basis of principal
→ Time, T = The duration for which the money is borrowed
→ Rate of Interest,⇒= rate at which the interest is charged on the principal
→ Amount, A = Principal, P + Interest, I
→ Simple Interest, SI = Fixed percentage of the principal
Compound Interest, CI = The amount received at the end of the period or first year becomes principal for the next period or second year and so on.
The interest is calculated on the new principal at the end of every time period

Simple and Compound Interest - Quantitative Aptitude for IBPS, SBI, RBI, CSAT, SSC, CAT exams

Formulas

⇒ Simple Interest SI 

⇒ Compound Interest CI

⇒ Difference between Compound Interest and Simple Interest for two years


⇒ Difference between Compound Interest and Simple interest for three years


⇒ The CI in the n th year is X and CI in n+1 th year is Y, then the rate of interest R is


⇒ A principal amounts to X times in T years at Simple Interest. In how many years will it becomes Y times


⇒ A principal amounts to X times in T years at Compound Interest. In how many years will it becomes Y times.


⇒ The total SI in the first two years is Rs. X and the total CI in the first two years is Rs. Y. What is the Rate of interest, if both the Principal and Rate of interest are same for both SI and CI?


Depreciation


Prices of some articles depreciates in their value over a period of time

Population


Population increase or decrease is calculated as compound interest

Instalments


When the borrower paid the sum in parts, then it is said that the borrower is paying in installments

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