Simple and Compound Interest

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Interest is the extra amount returned on the borrowed money. Person who gives the credit or loan receives the interest and is income for him. While on the other hand person who receives the credit pays this interest along with principal amount and it is an expense for him.

Interest can be calculated in two ways

Simple Interest 
In this method interest is calculated on the principal amount only. 
Simple Interest = P X R X T
P = Principle
R = Rate of Interst
T = Time

Compound Interest
In this method interest is added back to the principle and the total amount that is sum of principle and interest is used to calculate the interest. 

These question appear in all the entrance and competitive exams like CLAT, NLU, SSB, UPSC, BBA etc. students can easily score good marks in these questions and there by achieving a good rank. Students must practice these online mock test and MCQ test series for CLAT and NLU. 

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