HOW TO SOLVE PROBLEMS ON COMPOUND INTEREST-LEARN SERIES
Hi Bankersdaily Aspirants,
Aspirants as you all know IBPS RRB exams are heading soon ,we had started our Preparation & we had Started Learn Series for Neophyte’s in which we are discussing on the each type of problem in all the topics in Aptitude,Reasoning and English Section.
INTRODUCTION TO COMPOUND INTEREST:
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.
In IBPS Exam,2 Questions are asked from this section.
FORMULAS FOR COMPOUND INTEREST:
- Let Principal = P, Rate = R% per annum, Time = n
When interest is compounded Annually:
When interest is compounded Half-yearly:
When interest is compounded Quarterly:
When interest is compounded Annually but time is in fraction, say 3 2/5 years:
When Rates are different for different years, say R1%, R2%, R3% for 1st, 2ndand 3rd year respectively.
Present Worth of Rs.x due n years hence is given by:
COMPARISON BETWEEN SI AND CI :
|PRINCIPAL||CI IN YEARS||YEARS||TOTAL CI||AMOUNT|
|PRINCIPAL||SI IN YEARS||YEARS||TOTAL SI||AMOUNT|
1.For 1st year SI=CI
2.Variation of Interest Starts from 2nd Year.
3.In CI interest and Amount in 2consecutive years also increases by r%
1.If a man invests Rs.10000 at the rate of 20% per annum for 2 1/2 years.What is the amount of the man if his principal is compounded annually?
DIFFERENT RATES FOR DIFFERENT YEARS:
1.If a man invests principal of Rs.10000, with different rate of interest that is for first 2 years Rate of interest is 10% for the next year Rate of Interest is 20% and then for next 1 year is 25% per annum which is compounded annually, What will be the amount for 4years?
WHEN INTEREST IS COMPOUNDED ANUALLY, HALF YEARLY, QUARTERLY:
1.A man invests principal of Rs.10000 at the rate of 20%per annum with interest compounded half yearly for 2 years.What is the Amount he will have at the end of 2years?
BASED ON EFFICIENCY:
1.A sum amounts to twice in 3 years at Compound Interest.In how many years it becomes 8 times at same rate r%?
DIFFERENCE BETWEEN SIMPLE AND COMPOUND INTEREST:
FOR 2 YEARS:
FOR 3 YEARS:
1.The difference between Simple interest and Compound Interest in(Rs.) on Rs.1200 for one year at 10% per annum reckoned half yearly is?
2.If the difference between CI and SI on a certain sum of money for 3 years at 10% per annum is Rs.93.Find the sum(in Rs.)