Compound Interest Shortcut Tricks
Shortcut Tricks are very important things in competitive exam. Time is the main factor in competitive exams. If you know time management then everything will be easier for you. Most of us miss that part. Here in this page we give few examples on Compound Interest shortcut tricks. These shortcut tricks cover all sorts of tricks on Compound Interest. We request all visitors to read all examples carefully. These examples here will help you to better understand shortcut tricks on compound interest.
Before starting anything just do a math practice set. Write down twenty math problems related to this topic on a page. Solve first ten math problems according to basic math formula. You also need to keep track of the time. After finish write down total time taken by you to solve those ten maths. Now go through our page for compound interest shortcut trick. After finishing this do remaining questions using Compound Interest shortcut tricks. Again keep track of Timing. You will surely see the improvement in your timing this time. But this is not enough. You need to practice more to improve your timing more.
Math section in a competitive exam is the most important part of the exam. It doesn’t mean that other topics are not so important. But if you need a good score in exam then you have to score good in maths. Only practice and practice can give you a good score. You should do your math problems within time with correctness, and only shortcut tricks can give you that success. But it doesn’t mean that you can’t do math problems without using any shortcut tricks. You may do math problems within time without using any shortcut tricks. You may have that potential. But so many other people may not do the same. So Compound Interest shortcut tricks here for those people. Here in this page we try to put all types of shortcut tricks on Compound Interest. But we may miss few of them. If you know anything else rather than this please do share with us. Your little help will help others.
Compound Interest is difference between the original principal and final amount is called Compound Interest ( CI ). Compound Interest is Similar to Simple Interest shortcut tricks as we know that same for some time but some cases its different from Simple Interest, In case of Compound Interest the interest is vary according to time but the first year it is equal always that is.
1st year Interest is “Compound Interest = Simple Interest”. But after that year it is increases. This type of problem are given in Quantitative Aptitude which is a very essential paper in banking exam. Under below given some more example for your better practice .
When we use this given below formulas some calculation it takes too much time and when we try to solve it, it become lengthy, So reduces the taking time to solve problems we give some extra shortcut tricks which helps you for fast calculation.
Find Compound Interest using formula
Few basic terms of Compound Interest.
- A = Amount
- P = Principal
- R = Rate of Interest
- N = Number of Years
Formula Type #1: Interest Compounded Yearly
Amount (A) = Principal (P) X ( 1 + Rate of Interest (R) / 100 )Number of Years (N)
Formula Type #1: Interest Compounded Half-Yearly
Amount (A) = Principal (P) X [ 1 + Rate of Interest (R) / 2 / 100 ]2 X Number of Years (N)
Principal (P) = [ 1 + Rate of Interest (R) / 200 ] 2 X Number of Years (N)
Formula Type #1: Interest Compounded Quarterly
Amount (A) = Principal (P) X [ 1 + Rate of Interest (R) / 4 / 100 ]
Principal (P) [ 1 + Rate of Interest (R) / 400 ] 4 X Number of Years (N)
If we apply basic formula Amount = Principal ( 1 + R / 100 )N, where Principal (P) = 1 and Rate of Interest (R) = 5%. Then:
- For the First year it will be: ( 1 + 5 / 100 )1
= 21 / 20.
- For the Second year it will be: ( 1 + 5 / 100 )2
= 441 / 400.
- For the Second year it will be: ( 1 + 5 / 100 )3
= 9261 / 8000.
More Shortcut tricks on Simple and Compound Interest
- Find Simple Interest based question
- Find the rate % based question
- Find Principle or Sum based question
- Find Compound Interest tricks
- Difference between CI and SI of Three Years question
- << Go back to SI and CI main page
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