## 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

## Formulas

### 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