Simple Interest And Compound Interest Problems And Solutions

Sometimes the interest is also calculated half yearly or quarterly.

Simple interest and compound interest problems and solutions. A p 1 r t where p is the initial amount principal r is the rate and t is time in years. Glen received 2 250 loan from bank. Joseph buys a new home using an interest only loan where he pays only the interest on the value of the home each month. Solutions to the above questions.

A 2000 1 0 03 2 2121 80 3 years. A 2000 1 0 03 1 2060 2 years. In the competitive exams two types of interest questions asked first is simple interest and second is compound interest. Find the rate of interest.

This pdf is provided to make you the master of the topic. Amount principal 1 rate of interest 100 time period. Interest amount principal. 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.

Simple interest and compound interest problems and solutions. Solving compound interest problems to solve compound interest problems we need to take the given information at plug the information into the compound interest formula and solve for the missing variable. 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. Solution when interest is compounded annually total amount a after t years is given by.

Examples of simple interest problems 1. After six months he paid back 2 295 and closed the loan. Ibps po rrb clerk sbi po cat. Here the difference after 3 years is 3 1 and in the question it is given to be rs.

I prt given. Time period is 6 months. Formula for simple interest is. Very competitive exam question is one of the easiest but tricky topic in aptitude problems in this topic needs more focus on percentage.

How to solve simple interest problems compound interest problems continuously compounded interest problems and determining the effective rate of return. I 2295 2250. Abbreviated as amount p 1 r 100 t when compounded annually. Thus the principal is 930 100 3 1 rs.

Simple interest and compound interest problems and solutions pdf. 1 find the interest on a used car loan of 5000 at a rate of 16 for a period of 8 months. When compounded semi annually or half yearly amount p 1 r 2 100 2t. The method used to solve the problem will depend on what we are trying to find.

The compound interest after 3 years 10 will be 1 1 1 1 1 1 1 331 cumulative rate of interest is 33 1. In simple interest formula we use time period in years. 2 1 practice simple and compound interest. A 2000 1 0 03 3 2185 45.