Simple & Compound Interest Tricks – Bank Exams
Formula Based • Concept Clarity • Easy Scoring
1. Simple Interest (SI)
SI = (P × R × T) / 100
- P = Principal
- R = Rate
- T = Time
2. Example (SI)
P = 1000, R = 10%, T = 2 years
👉 SI = (1000 × 10 × 2) / 100 = 200 ✔
3. Compound Interest (CI)
👉 Formula:
Amount = P (1 + R/100)^T
CI = Amount - Principal
4. Example (CI)
P = 1000, R = 10%, T = 2
👉 Amount = 1000 × (1.1)² = 1210
👉 CI = 210 ✔
5. Important Trick
👉 Difference between CI & SI:
For 2 years:
CI - SI = (P × R²) / 10000
6. Shortcut Method
👉 Use percentage growth:
1000 → 1100 → 1210 ✔
7. Common Mistakes
- Confusing SI & CI ❌
- Wrong formula usage ❌
- Calculation errors ❌
8. Topper Tip
Use shortcut for 2–3 years CI. Avoid full formula if possible.
9. Quick Practice
P = 2000, R = 10%, T = 1
👉 SI = 200 ✔
👉 CI = 200 ✔
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