# Interesting Quiz on ‘INTEREST’ Calculations! ## SIMPLE INTEREST

SI=(P*T*R)/100;

Where, P=Principal Amount

T=Time period in years

R= Rate of interest in percentage

• If rate of interest differs year to year then
SI = Principal * TimePeriod*(R1+R2+R3……..)/100
• If a sum of money  is divided into n parts with r1% interest for t1 years, r2% interest for t2 years, r3% interest for t3 years then the ratio of the sum divided into n parts is:
( 1/r1*t1) : (1/r2*t2) : (1/r3*t3)

Amount=P+SI=P+(P*T*R/100)

• If the sum  becomes n times in t years at Simple interest,then formula for calculating interest is…
R=(100(n-1)/t)%
• If a sum becomes n times at certain rate of interest in t years.Then the time taken to make the same amount N times with same interest rate is =(N-1)/2*t

### COMPOUND INTEREST

The difference between the amount and money borrowed is compound interest.

A=P[1+(r/100)n]

CI={P[1+(r/100)n]-1}

Where,  CI= Compound Interest

P=Principal amount,

r=Rate of interest,

n=Number of years,

A=Amount.

• When compound interest is calculated half yearly then r=r/2% and n=2n A=p[1+(r/2*100)2n]
• When compound interest is calculated Quarterly then r=r/4% and n=4n A=p[1+(r/4*100)4n]
• The difference between compound interest and simple interest over 2 years  is given by p(r/100)2
• The difference between compound interest and simple interest over 3 years  is given by  p(r/100)3 * {(r/100)+3}

Correct! Wrong!

Correct! Wrong!

Correct! Wrong!

Correct! Wrong!

#### The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

Correct! Wrong!

Simple Interest and Compound Interest
Great... You value money a lot
Good...I think you miss total count will buying things at markets
Better luck next time... Be conscious while returning money to someone