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.
Money which is borrowed or lent out. Abbreviated by P.
Extra money paid for using other’s money.Abbreviated by S.I. or C.I.
Amount of charges.Abbreviated by R.
Interest paid only on the original amount of money and not on the interest it has already earned.
Finding P,R,T through S.I.
Interest which calculated on borrowed amount as well as previous interest.
Following cases for the compound interest as-
As half yearly
As time in fraction say 5 years
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.?
Question 2:A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is: