Saturday, 18 April 2026

 

Group study and problem solving

Problem Solving and Logical Thinking Practice

Simple & Compound Interest – Shortcut Tricks & Tough Problems

Interest is a key topic in bank exams. Understanding concepts and shortcuts helps solve quickly.


1. Simple Interest (SI)

Formula:
SI = (P × R × T) ÷ 100

P = Principal, R = Rate, T = Time

Example:
P = 1000, R = 10%, T = 2 years
SI = (1000×10×2)/100 = 200


2. Compound Interest (CI)

Formula:
Amount = P(1 + R/100)^T

CI = Amount - Principal

Example:
P = 1000, R = 10%, T = 2 years
Amount = 1000(1.1)^2 = 1210
CI = 210


3. Shortcut for 2 Years

CI - SI = P × (R/100)^2

Example:
P = 1000, R = 10%
Difference = 1000 × (0.1)^2 = 10


4. Growth Concept

For increase:
Multiply by (1 + rate)

For decrease:
Multiply by (1 - rate)


Tough Problems

Q1:
Find SI on 2000 at 5% for 3 years.

Solution:
SI = (2000×5×3)/100 = 300


Q2:
Find CI on 1000 at 10% for 2 years.

Solution:
Amount = 1000(1.1)^2 = 1210
CI = 210


Q3:
Find difference between CI and SI on 5000 at 10% for 2 years.

Solution:
Difference = 5000 × (0.1)^2 = 50


Exam Strategy

  • Use SI formula directly
  • Use shortcut for CI (2 years)
  • Avoid full power calculation if shortcut available
  • Focus on difference questions


Shaktimatha Learning
Quantitative Aptitude • Bank Exams • Competitive Preparation

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