Interest: Interest is the fixed amount paid on barrowed money the sum lent is called the principal.
It is the part of an aptitude; we can easily solve the simple and compound problems.
The sum of the principal and interest is called the amount interest is of two kinds.
1) Simple Interest: A method of calculating the future value of a sum assuming that interest paid is not compounded it is called “Simple Interest”. It is determined by multiplying the interest rate by the period.
Simple Interest =P X I X N
2) Compound Interest: The compound interest Money is said to be lent at compound interest when at the end of a year of a year, Interest that accrues on the initial principal deposit, loan or debt is called as “Compound Interest”.
The Compound Interest test also requires the tests to learn skills from the test as the test proceeds, challenging thinking skills.
The compound interest which is calculated not only on the initial principal but also the accumulated interest of periods. Compound interest differs from simple interest.
The compound interest equation is: P = C (1+ r/n)^{ nt}
Simple and Compound problems are very useful for all competitive exams
