ST

COMPUND INTEREST
QUANTITATIVE APTITUDE
cIMPLE
INTEREST AND
SIMI
Compound Interest

CO Rs. P,
al Rs,=
=
Time =nyearS, Kate
=
r% per annum and interest compOunded annually
Principal

If

) When interestcompounded annually- Amount P| 1

100 |

When interestcompounded halfyearly = Amount =

P| 1+-
(ii) 100

ii) When interest compounded quarterly >

Amount =
P 1+
.

100

72n

iv) When interest compounded monthly

> Amount =
P| 1
100

When time is in fraction of a year, say 3=years> Amount =P|1+0

1. 100

durring first year, r,% durring 2nd year, r,% durring3rd

year.
(vi) When rate of interest is r,%

Amount =

Concept 2: A-P1 C-A-P-P|14 -P, C-P|1

times in x years
becomes n times in t years and m
of money, placed at compound interest,
Concept 3: A sum

then, n =m
how money years willit be 9
Example: A sum of money ateompound
interestamotunts to thriceitself in3 years, in
times it self?
1
a-9, 3 - , x=6 years
Sol.
between CI and SI for two years
Concept 4: Relationship
CI 200+
SI 200 for the
at 10% per a n u u m is Rs. 400, find CI at the s a m e rate and
Example: TheSI o n a certain s u m of money for 2 years
same time.

CI 210 400 = Rs. 420

Sol. 200
certain sum of money for 2 years
at r%, is given by,
Cl and SI on a
Concept 5: When difference between the

Difference =P 100
for 2 years is Rs. 1.50, Find
of money at 5% per
annum
SI certain s u m
Thedifference between the CIand
on a
Example:
the sum
1 . 5 = 5 )

P Rs. 600
Sol 1002
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