Compound Interest (C.I.)

Compound interest (also known as compounding interest) is interest calculated on a loan or deposit depending upon both the initial principal and the accumulated interest from past periods.

Concepts

Formulas

Practice Questions

Real-Life Applications of Compound Interest (C.I.)

Real-life examples where the concept of Compound Interest (C.I.) is involved are:

Application 1:

Rule of 72: Have you ever wondered how many years it takes for money to double or how much money would become in 20-30 years under a compound interest scheme? Many people put their money in investment schemes without realising it since they believe it would give them high returns. Even a simple bank account will yield significant compound interest returns over time.

Compound Interest (C.I.) Aptitude Resources

The resources mentioned below can help you with your Compound Interest aptitude preparation.

1. Concepts

Learn important concepts related to Compound Interest. Once you begin comprehending what has to be assessed, you develop a better understanding of the nature of the questions.

2. Formulas

Learn important formulas linked to the Compound Interest problems that can help you answer the questions quickly and develop a greater understanding of the concepts.

3. Practice Problems

Practice sample problems related to the Compound Interest topic. A candidate is more likely to comprehend the concept and improve their speed and precision the more questions they practice.

FAQsFAQs

How important is Compound Interest topic in placement examinations?

Compound Interest topic carry medium weightage in the Quantitative Aptitude examinations.

Is Compound Interest Difficult to learn?

No, Compound Interest topic is not difficult to understand. Students must practice Compound Interest on a daily basis and memorise formulas to address the problems accurately. Students must also learn different shortcuts & tricks to improve their solving speed.

What is the fastest and most effective way to learn the Compound Interest topic?

Students must understand the foundations and formulas of Compound Interest. They should be informed of the shortcuts and tricks for various types of questions on the topic. They must practice on a daily basis before taking a weekly mock exam.