Solving Compound Interest Problems

Solving Compound Interest Problems-46
There may be questions asked in your Bank and Insurance as well as Placement exams where you have to find out Compound Interest given the Principal Amount, the time (or duration) and the Rate of Interest. But if we will go by equivalent rate of interest, it will save our time.You can use formulas to solve these types of problems. Equivalent rate of interest If options are far from each other, then we can take it approximate to 37%, so our calculation will be more simplified. 27378If we will take approximation to 37%, we will get interest With the approximation, calculations in compound interest problems becomes easy and we get the answer near to the actual answer. The difference between SI and CI compounded annually on a certain sum of money for 2 years at 8% per annum is Rs.

There may be questions asked in your Bank and Insurance as well as Placement exams where you have to find out Compound Interest given the Principal Amount, the time (or duration) and the Rate of Interest. But if we will go by equivalent rate of interest, it will save our time.You can use formulas to solve these types of problems. Equivalent rate of interest If options are far from each other, then we can take it approximate to 37%, so our calculation will be more simplified. 27378If we will take approximation to 37%, we will get interest With the approximation, calculations in compound interest problems becomes easy and we get the answer near to the actual answer. The difference between SI and CI compounded annually on a certain sum of money for 2 years at 8% per annum is Rs.

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If you do not buy anything else on the card and you do not make any payments, how much money would you owe the company after 6 months?

Compound Interest problems can become tricky and very confusing at times. 8248Answer – Br = rate of interestt = Time period The above equation will take time for simplification.

Then, T = 100*30/100*15 = 2% A money lender lent Rs.

The amount should be returned to him when the total interest comes to Rs.

But what follows is the quickest way to solve compound interest problems. Here is the example for the above description:(A) Rs. Now Interest will be And the total amount would be = Rs. Check out this video to know about Simple & Compound Interest.

Ap Language Essay Prompts - Solving Compound Interest Problems

This will save about a minute of your time, allowing you to solve an extra question and boost your score and percentile.

Simple interest for (4-2.5) years = 16500 – 15000 Therefore, SI for 1.5 years = Rs. SI for 2.5 years = 1500/1.5 * 2.5 = 2500 Principal amount = 15000 – 2500 = Rs. Rate of Interest = 2500 * 100 / 12500 * 2.5 → R = 8%.

: Amount becomes 15000 in 2.5 years and 16500 in 4 years.

This page focuses on understanding the formula for compound interest ; if you're interested in taking a deeper dive into how compound interest works and exploring some real world examples, please read our article here.

If you start a bank account with ,000 and your bank compounds the interest quarterly at an interest rate of 8%, how much money do you have at the year's end?

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