Simple Interest And Compound Interest Problems And Solutions

Abbreviated as amount p 1 r 100 t when compounded annually.

Simple interest and compound interest problems and solutions. This pdf is provided to make you the master of the topic. Solution when interest is compounded annually total amount a after t years is given by. I 2295 2250. In the competitive exams two types of interest questions asked first is simple interest and second is compound interest.

Simple interest and compound interest problems and solutions. Here the difference after 3 years is 3 1 and in the question it is given to be rs. Thus the principal is 930 100 3 1 rs. Simple interest and compound interest problems and solutions pdf mostly all the competitive exams have some regular topics such as general intelligence and reasoning quantitative aptitude and general knowledge.

Ibps po rrb clerk sbi po cat. How to solve simple interest problems compound interest problems continuously compounded interest problems and determining the effective rate of return. In simple interest formula we use time period in years. I prt given.

The compound interest after 3 years 10 will be 1 1 1 1 1 1 1 331 cumulative rate of interest is 33 1. A 2000 1 0 03 1 2060 2 years. When compounded semi annually or half yearly amount p 1 r 2 100 2t. A 2000 1 0 03 3 2185 45.

Amount principal 1 rate of interest 100 time period. Aspirants those who are preparing for competitive exams must have to concentrate on all those topics. Joseph buys a new home using an interest only loan where he pays only the interest on the value of the home each month. Find the rate of interest.

Very competitive exam question is one of the easiest but tricky topic in aptitude problems in this topic needs more focus on percentage. A 2000 1 0 03 2 2121 80 3 years. Sometimes the interest is also calculated half yearly or quarterly. A p 1 r t where p is the initial amount principal r is the rate and t is time in years.

2 1 practice simple and compound interest. Solutions to the above questions. The method used to solve the problem will depend on what we are trying to find. After six months he paid back 2 295 and closed the loan.

Interest amount principal. The simple interest after three years 10 is 30. Time period is 6 months. Both types are important by the perspective of ssc and banking exams.

Examples of simple interest problems 1. Formula for simple interest is. Glen received 2 250 loan from bank. 2 find the interest earned on an investment of 10 000 into a money market account that pays a simple interest rate of 1 75 over a 39 wk period.