Compound interest for 3 years shortcut
Today I am going to share Simple Interest and Compound Interest tricks and shortcuts. Show
Simple InterestFormula of Simple Interest:Examples#1Find the simple interest, If
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#2Find the following:
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#3
Practice Set for Simple Interest # Solution
Compound InterestFormula of Compound Interest:Trick :Calculating Compound Interest for 3 YearsCalculating Compound Interest for 4 year# FormulasCase 1. When interest is not Compound yearly, Amount after 't' years A = P [1+ r/n×100]nt n= no of compounding per year When interest is compounded half yearly, n = 2 compounded quarterly, n = 4 compounded monthly, n = 12 Case 2. When rate % is no equal every year and interest is compounded yearly Basic formula : # Difference between Compound Interest and Simple InterestCI - SI = P [ R/100 ]2 When time t = 3 years CI - SI = P [ (R/1003 +3 (R/100)2] # Examples#1
Practice Set for Compound Interest # Solution1. 2000 2. 98.56 3. 04 4. How is CI calculated for 3 years?GIVEN : R1 = 2% R2 = 4% R3 = 6%. FORMULA USED : Effective rate of C.I. = R1 + R2 + (R1 × R2)/100.. CALCULATION : Effective rate of C.I. for 2 years = 2 + 4 + (2 × 4)/100. = 6 + 8/100 = 6.08% Effective rate of C.I. for 3 years = 6.08 + 6 + (6.08 × 6)/100 [∵ r1 = 6.08, r2 = 6] = 12.08 + 36.48/100. = 12.08 + 0.364. = 12.444%. How do you compound interest quickly?For example, if you have an investment that earns 5% compound interest and you want to know how much money you'll have after 3 years, you would plug the following values into the formula: A = P(1 + r/n)^nt. A = 1000(1 + 0.05/1)^3. A = 1000(1.05)^3.
What is the compound interest of 10% for 3 years?∴ The compound interest is Rs. 3,310.
What is SI and CI?The two ways are simple interest (SI) and compound interest (CI). Simple interest is basically the interest on a loan or investment. It is calculated on the principal amount. At the same time, Compound Interest is the interest calculated on interest.
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