Simple And Compound Interest Mathematic

 Simple And Compound Interest Mathematic 

Simple Interest :-  Simple interest is a quick and easy method of calculating the interest of the any amount in a particular time . For a normal loan and any amount deposit in bank , this mathematics normally use in banks. 

👉Like that if you give a loan to one person 100 with the interest rate of 10% for 3 year in simple interest then after the 3 you will receive the amount of 130 . that will be calculate easy by using the simple interest formulas.

FORMULA :-  I = (P*T*R)/ 100 

There, I = interest 

P = Principal Amount 

T = Time (for the how much time )

R = interest Rate 

Example :-  Raj make a deposit in bank of 1000 rupees for 3 year with a simple interest 9% . Then calculate that after 3 year how much amount will be able to withdraw by Raj ?

 (a)1230 (b)1270 (c)1250 (d)1300

Answer:-  (b)1270

Description :-   IN THIS , P = 1000 (Principal Amount )

T = 3 (Time Period )

R = 9% (Rate Of Interest )

I = ? (interest) 

There for :- I = (P * T * R) / 100

                      = (1000 * 3 * 9) / 100

                      = 270rs 

270 is the interest of the total 3 year in simple interest , That mean Raj will able to withdraw the total amount will = P + I = 1000 +270 = 1270rs 

                       

Compound Interest:-  Compound Interest that mean for a amount will receive a total amount with the interest in compound process that mean  receive the interest of the interest . 

👉Like that if you give and amount of 100 rupees to someone with the 10% compound interest for 3 year that mean for first year ta principal amount is 100 after 1 year the principle amount will be 110(principle amount + one year interest ) same also after the 2 year the principle will be 121 (new principle amount + one year interest of new principle amount ) same also after 3 year total amount will be receive by you will be 133.1rs .

 FORMULA :- A = P(1+R/100)^T

 A = Principle amount + compound interest 

P = Principle Amount 

R = Rate of interest 

T = Time period 

I = Interest = A - P

Example :- Ram take e  loan of 12000 with  12% compound interest for 3 year . after the 3 year how much amount will be paid by Ram ?

(a)16860  (b)16890 (c)16910 (d)16925

Answer :- (a)16860

Description :-  IN THIS , P = 12000 (Principal Amount )

T = 3 (Time Period )

R = 12% (Rate Of Interest )

A = ? (Principal amount + compound interest) 

There for :- A = P(1+R/100)^T

                       = 12000 (1+12/100 )^3

                       = 16859.136(Answer) 

 Some short tricks for compound interest mathematics :-

For Principal Amount of 100 rupees interest and year below there look on this and remind this with this you also able to solve the problem with some seconds 

✒ Short Tricks Formula Is :- 

👉I = P * (From the Table put the value in rate % with respected to Year )/100

Like that , An amount 12000 , with the 10% interest and the years for 2 then the compound interest of the amount will be , 

  Answer :- I = (12000 * 21)/100  [ there 21 from the table for 2years and 10% interest rate ]

                   = 2520 [that is the interest of 12000 for 2 year in compound interest ]

✅ Raj give a loan of 15000rs  to Rahim in 12% compound interest for 3 year . After 3 years how much extra amount will be paid by Rahim .

Answer :- There , P = 15000 rs 

                             R = 12%

                             T = 3 years

                             I = ? (interest amount )

                             40.49 = from the table for 12% interest rate for 3 years    

✔The interest will be , I = (P * 40.49)/ 100

                                    = (15000 *40.49) /100

                                    = 6073.5rs 

👉 Rahim Extra amount will be 6073 for compound interest.

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