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# Find Compound Interest Tricks

## Find Compound Interest

Finding Compound Interest are one of the most important topics in exams. Time takes a huge part in competitive exams. If you know time management then everything will be easier for you. Most of us miss that part. We provide examples to find Compound Interest shortcut tricks here in this page below. 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 doing anything we recommend you to do a math practice set. Then find out twenty math problems related to this topic and write those on a paper. Solve first ten math problems according to basic math formula. You also need to keep track of Timing. After finish write down total time taken by you to solve those ten maths. Now read our examples on compound interest shortcut tricks and practice few questions. After doing this go back to the remaining ten questions and solve those using shortcut methods. Again keep track of timing. The timing will be surely improved this time. But this is not all you need. You need to practice more to improve your timing more.

### Few Important things to Remember

You all know that math portion is very much important in competitive exams. That doesn’t mean that other topics are less important. But only math portion can leads you to a good score. You can get good score only by practicing more and more. All you need to do is to do math problems correctly within time, and you can do this only by using shortcut tricks. But it doesn’t mean that without using shortcut tricks you can’t do any math problems. You may have that potential to do maths within time without using any shortcut tricks.

But, other peoples may not do the same. Here we prepared compound interest shortcut tricks for those people. Here in this page we try to put all types of shortcut tricks on Compound Interest. But it possible we miss any. We appreciate if you share that with us. Your little help will help so many needy.

### Find Compound Interest using Tricks

In case of Compound Interest the interest is vary according time to time. But, at the first year it is equal to:

• Compound Interest = Simple Interest

But, after that year it is increases. So, then we need to find Compound Interest using formula. 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.

### Few examples of Compound Interest

Here Principal amount, Rate of percent and Time is given. You need to find the Compound interest using formula and tricks.

### Example #1 – Find Compound Interest

What would be the compound interest obtained on an amount of Rs.8000/- at the rate of 10% per annum after 2 years?

1. Rs.1680/-
2. Rs.1720/-
3. Rs.1880/-
4. Rs.1990/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
Simple Method:
For the First year, interest will be:
8000 x 10 / 100
= Rs.800/-

For the Second year, interest will be:
( Principal Amount + First year interest ) x 10 / 100
= ( 8000 + 800 ) x 10 / 100
= 8800 x 10 / 100 = Rs.880/-

So, After 2 year, compound interest will be ( 800 + 880 ) = Rs.1680/-.

Rough Workspace

### Example #2 – Find Compound Interest

What would be the compound interest to be obtained on an amount of Rs.8000/- at the rate of 10% per annum after 2 years?

1. Rs.1680/
2. Rs.1720/
3. Rs.1880/
4. Rs.1990/

Show Answer Show How to Solve Open Rough Workspace

How to Solve
P = Principal Amount
R = Rate of Interest
N = Number of Years

CI = P [(1 + R / 100)N – 1]
8000 x [(1 + 10 / 100)2 – 1]
= Rs.1680/-

Rough Workspace

### Example #3 – Find Compound Interest

Raju invested an amount of Rs.8460/- at 6% per annum for 2 years. What approx amount would he obtain at the end of two years?

1. Rs.9023/- (approx)
2. Rs.9505/- (approx)
3. Rs.9734/- (approx)
4. Rs.9936/- (approx)

Show Answer Show How to Solve Open Rough Workspace

How to Solve
8460 x 106 x 106 / 100 x 100 = Rs.9505/- (approx).
Rough Workspace

### Example #4 – Find Compound Interest

What will be the compound interest on a sum of Rs.6500/- at the rate of 6% per annum for 2 years?

1. Rs.753.40/-
2. Rs.780.76/-
3. Rs.803.40/-
4. Rs.820.43/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
CI = 6500 x [ (53 x 53 / 50 x 50) -1 ]
= Rs.803.40/-
Rough Workspace

### Example #5 – Find Compound Interest

Find the compound interest of Rs.18000 at 5% per annum in 3 years.

1. Rs.2183.75/-
2. Rs.2480.73/-
3. Rs.2672.70/-
4. Rs.2837.25/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
18000 x 21 x 21 x 21 / 20 x 20 x 20 = 20837.25
( 20837.25 – 18000 ) = Rs.2837.25/-
Rough Workspace

### Example #6 – Find Compound Interest

Find the compound interest obtained on an amount Rs.8000/- at the rate of 12% per annum for 2 years.

1. Rs.2035.20/-
2. Rs.2130.30/-
3. Rs.2242.60/-
4. Rs.2380.70/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
CI = 8000 x [ (112 / 100)2 – 1 ]
= Rs.2035.20/-
Rough Workspace

### Example #7 – Find Compound Interest

The simple interest deposited on sum of certain principle is Rs.8400/- for 7 years at the rate of 12% per annum. What should be the Compound Interest deposited on that principle at the rate of 6% per annum in 2 years?

1. Rs.1057/-
2. Rs.1125/-
3. Rs.1180/-
4. Rs.1236/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
Let, the principle amount be X.
So,
X x 7 x 12 / 100 = 8400
X = Rs.10000/-

So, Compound Interest is = ( 10000 x 105 x 105 / 100 x 100 ) – 10000
= 11236 – 10000
= Rs.1236/-

Rough Workspace

### Example #8 – Find Compound Interest

A principal of Rs.15000/- at rate percent of 4% per annum for 2 years, compound annually. Find the Compound Interest.

1. Rs.1030/-
2. Rs.1160/-
3. Rs.1224/-
4. Rs.1483/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
We apply the formula to obtain CI is:
CI = P [(1 + R / 100)N – 1]
P = 15000
R = 4%
N = 2

CI = 15000 x [( 1 + 4 / 100)2 – 1]
or, 15000 x [ 26 x 26 / 25 x 25 – 1] [ as we put down (26 / 25)2 ]
or, 15000 x 51 / 625
finally, Rs.1224/-.

Rough Workspace

### Example #9 – Compound Interest

Simple Interest accrued on an amount of Rs.22500/- at the end of 3 years is Rs.10800/-. What would be the Compound Interest accrued on the same amount at the same rate at the end of 2 years?

1. Rs.7776/-
2. Rs.8284/-
3. Rs.8520/-
4. Rs.8888/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
Here is given,
Amount = 22500
Time = 3
SI = 10800
So, we need to find Rate percent.

We know SI = P x T x R / 100
10800 = 22500 x R x 3 / 100
R = 1080000 / 67500
= 16%
So, Rate of percent = 16%.

Compound Interest accrued on the same amount at the same rate at the end of 2 years will be:
CI = 22500 x (116 / 100 x 116 / 100 – 1 )
or, 22500 x ( 116 x 116/ 10000 – 1)
or, 22500 x ( 13456 / 1000) – 1
then, 22500 x (1.3456 – 1)
or, 22500 x 0.3456
finally, 7776

So, the CI at the end of 2 years will be Rs.7776/-.

Rough Workspace

### Example #10 – Compound Interest

What would be the compound interest of an amount of Rs.6000/- at the rate 12% per annum for 2 years?

1. Rs.1006.83/-
2. Rs.1280.73/-
3. Rs.1472.72/-
4. Rs.1526.40/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
or, 6000 [ (112 / 100)2 – 1]
or, 6000 x 2544 / 10000
finally, Rs.1526.40/-
Rough Workspace

### Example #11 – Compound Interest

What will be the compound interest on a sum of Rs.4800/- at the rate of 6% per annum for 2 years?

1. Rs.544.75/-
2. Rs.593.28/-
3. Rs.612.46/-
4. Rs.659.31/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
Compound Interest = P [ 1 + R / 100 ]n – 1
4800 x [( 1 + 6 / 100 )2 – 1]
4800 x [ 53 x 53 / 50 x 50 – 1 ]
= 593.28

So, the compound interest is Rs.593.28/-.

Rough Workspace

### Example #12 – Compound Interest

What would be the compound interest obtained on an amount of Rs.1600/- at the rate of 8% per annum after 2 years?

1. Rs.211.45/-
2. Rs.233.87/-
3. Rs.266.24/-
4. Rs.288.93/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
Compound Interest = P ( 1 + R / 100)N – P
1600 ( 1 + 8 / 100 )2 – 1600
( 1600 x 27 x 27 / 25 x 25 ) – 1600
= ( 1866.24 – 1600 )
= 266.24

So, the compound interest would be Rs.266.24/-.

Rough Workspace

### Example #13

What would be the compound interest obtained on an amount of Rs.6000/- at the rate of 10% per annum after 2 years?

1. Rs.1260/-
2. Rs.1350/-
3. Rs.1400/-
4. Rs.1490/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
6000 x [ (1 + 10 / 100) ]n – 1
or, 6000 x [(11 / 10 )2 – 1]
or, 6000 x 21 / 100
finally, 1260

So, the compound interest would be Rs.1260/-.

Rough Workspace

### Example #14

What would be the compound interest obtained on an amount of Rs.8850/- at the rate of 12% per annum after 2 years?

1. Rs.1846.73/-
2. Rs.2057.38/-
3. Rs.2251.44/-
4. Rs.2480.35/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
Principal = 8850
Rate = 12
Time = 2 years

Amount = 8850 ( 1 + 12 / 100 )2
= 8850 x 28 x 28 / 25 x 25
= 11101.44

So, Compound Interest = ( 11101.44 – 8850 ) = Rs.2251.44/-

Rough Workspace

### Example #15

What would be the compound interest obtained on an amount of Rs.7500/- at the rate of 6% per annum after 2 years?

1. Rs.754/-
2. Rs.811/-
3. Rs.888/-
4. Rs.927/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
Amount = 7500
Rate = 6
Time = 2 years

So, 7500 [ 106 x 106 / 100 x 100 ] – 7500
or, 7500 x 11236 / 10000 – 7500
or, 8427 – 7500
finally, 927

So, compound interest after 2 years would be Rs.927/-.

Rough Workspace

### Example #16

What would be the compound interest obtained on an amount of Rs.6400/- at the rate of 8% per annum after 2 years?

1. Rs.915.73/-
2. Rs.978.31/-
3. Rs.1064.96/-
4. Rs.1274.90/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
In first year it’s always same = 6400 x 8 / 100 = 512
In second year compound interest is 512 + 40.96. [ i.e, 512 x 8 / 100 = 40.96 ]
So, total compound interest is 512 + 512 + 40.96 = Rs.1064.96/-
Rough Workspace

### Example #17

What compound interest accrued on an amount of Rs.18000/- at the rate of 10% per annum for the 2 years?

1. Rs.3275/-
2. Rs.3583/-
3. Rs.3780/-
4. Rs.3963/-

Show Answer Show How to Solve Open Rough Workspace

How to Solve
Formula: A = P( 1 + R / 100 )N
or, 18000 ( 1 + 10 / 100 )2
or, 18000 x 22 x 22 / 20 x 20
finally, 21780

So, compound interest after 2 years would be ( 21780 – 18000 ) = Rs.3780/-.

Rough Workspace

### More Shortcut tricks on Simple and Compound Interest

If you have any question regarding this topic then please do comment on below section. You can also send us message on facebook.

1. Bhargava says:

sir can you explain the compound interest short cut Technic how you solved

• suryakant sahoo says:

p.a.=6400
r=8
for 1st year t=1
s.i.=6400*1*8/100=512

for second year u need 6400’s s.i. + 512’s s.i.
for one year now t=1

6400’s s.i. for one year=512
512,s =512*1*8/100=40.96

2. Akash says:

Its really good and quite helpful
Thanks 1

3. Donny says:

Why do we use a minus 1 in the above formulae?

• harish says:

to determine compountd interest directly use minus 1 else the answer we get is amount.so to calculate directly CI they used
amount=p(1+r/100)^n
compound interest =p((1+r/100)-1)^n

4. Ajay says:

i am not sufficient for this method .Don’t use the easy method .Time is very important …

5. Ajay says:

compound interest simple method fpr example
P.a=10000
R=10%
T=3yr

solve:
1000*3=3000
100*3=300
10*1=10
total =3310
compound interest=3310Ans

6. soina jain says:

to determine difference on CI AND SI for 2years what short trick is used

• Vemaji says:

P*(R/100)^2 = Difference

7. Roopa says:

(CI)2 yrs -( SI)2 yrs =12,R%=20%,P=?

(SI)2 yrs=20+20=40% ;
(CI)2 yrs=(20+20+(20*20/100))% (shortcut)
=(40+(400/100))%
=(40+4)%
=44%
(CI)2 yrs -(SI)2 yrs =44-40 =4
we know that, P=(CI)2 yrs -(SI)2 yrs
given that, (CI)2 yrs -(SI)2 yrs =12

P = 44/100 -40/100
P=100
we need to multiply by 3 becoz in questn given 12
P=300

• No name says:

8. 