# Simple Interest & Compound Interest Questions Notes & Tricks

This topic will cover all the Tricks for Simple Interest (साधारण ब्याज) and Compound Interest (चक्रवृद्धि ब्याज). Some terms and Formulae are given below in details with proper use of formula to illustrate and make you understand well. Candidates preparing for bank exam (Clerk,PO,SO) and can also download these notes in PDF format.

## Terms related with interest

### Principal(मूलधन)-

Money which is borrowed or lent out. Abbreviated by P.

### Interest(ब्याज)-

Extra money paid for using other’s money.Abbreviated by S.I. or C.I.

### Rate(दर)-

Amount of charges.Abbreviated by R.

Simple InterestCompound Interest

Interest which calculated on borrowed amount as well as previous interest.

### Formulae-

A=P(1+$\frac { R }{ 100 } )^{ n }$

### Following cases for the compound interest as-

As half yearly

A=P(1+$\frac { (R/2) }{ 100 } )^{ 2n }$

As quarterly

A=P(1+$\frac {(R/4) }{ 100 } )^{ 4n }$

As time in fraction say 5 years $\frac { 2 }{ 5 }$

A=P(1+$\frac {R} { 100 } )^{ 5 }$*(1+$\frac{(2/5)R}{100})$

Question 1:What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?