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?

Rs.1680/-

Rs.1720/-

Rs.1880/-

Rs.1990/-

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Answer: Option (A)

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/-.

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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?

Rs.1680/

Rs.1720/

Rs.1880/

Rs.1990/

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Answer: Option (A)

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/-

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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?

Rs.9023/- (approx)

Rs.9505/- (approx)

Rs.9734/- (approx)

Rs.9936/- (approx)

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Answer: Option (B)

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?

Rs.753.40/-

Rs.780.76/-

Rs.803.40/-

Rs.820.43/-

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Answer: Option (C)

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.

Rs.2183.75/-

Rs.2480.73/-

Rs.2672.70/-

Rs.2837.25/-

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Answer: Option (D)

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.

Rs.2035.20/-

Rs.2130.30/-

Rs.2242.60/-

Rs.2380.70/-

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Answer: Option (A)

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?

Rs.1057/-

Rs.1125/-

Rs.1180/-

Rs.1236/-

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Answer: Option (D)

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.

Rs.1030/-

Rs.1160/-

Rs.1224/-

Rs.1483/-

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Answer: Option (C)

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?

Rs.7776/-

Rs.8284/-

Rs.8520/-

Rs.8888/-

Show AnswerShow How to SolveOpen Rough Workspace

Answer: Option (A)

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/-.

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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?

Rs.1006.83/-

Rs.1280.73/-

Rs.1472.72/-

Rs.1526.40/-

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Answer: Option (D)

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?

Rs.544.75/-

Rs.593.28/-

Rs.612.46/-

Rs.659.31/-

Show AnswerShow How to SolveOpen Rough Workspace

Answer: Option (B)

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?

Rs.211.45/-

Rs.233.87/-

Rs.266.24/-

Rs.288.93/-

Show AnswerShow How to SolveOpen Rough Workspace

Answer: Option (C)

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?

Rs.1260/-

Rs.1350/-

Rs.1400/-

Rs.1490/-

Show AnswerShow How to SolveOpen Rough Workspace

Answer: Option (A)

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?

Rs.1846.73/-

Rs.2057.38/-

Rs.2251.44/-

Rs.2480.35/-

Show AnswerShow How to SolveOpen Rough Workspace

Answer: Option (C)

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

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

Rs.754/-

Rs.811/-

Rs.888/-

Rs.927/-

Show AnswerShow How to SolveOpen Rough Workspace

Answer: Option (D)

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?

Rs.915.73/-

Rs.978.31/-

Rs.1064.96/-

Rs.1274.90/-

Show AnswerShow How to SolveOpen Rough Workspace

Answer: Option (C)

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?

Rs.3275/-

Rs.3583/-

Rs.3780/-

Rs.3963/-

Show AnswerShow How to SolveOpen Rough Workspace

Answer: Option (C)

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

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12 comments

Bhargava says:

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

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

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

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

then add all

Its really good and quite helpful

Thanks 1

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

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

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

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

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

P*(R/100)^2 = Difference

(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

Thanks Rupa for your help.

If % increases or a% and b% overall % increases is given by (a+b+ab/100)%

ex:20% increase for 2 yrs is

=( 20+20+20*20/100)%=44%