Check What Is The Formula For Simple Interest and Compound Interest: Download PDF For Bank Exams

What Is The Formula For Simple Interest and Compound Interest PDF: Interest formulas are mainly classified into two types. They are Simple Interest and Compound Interest. Simple Interest (SI) is calculated as the amount borrowed or invested for the whole duration of the loan without considering other factors. Money invested for a short period of time is calculated by Simple Interest. Short term loans with one year or less given by the financial companies are considered for Simple Interest. Compound Interest (CI) is calculated on the principal and the interest that accumulates over a previous year. Compound Interest is also known as "Interest on Interest". CI provides the amount of interest on an investment or a loan.

Simple Interest and Compound Interest is calculated using the Simple Interest and Compound Interest formula. Using Simple Interest and Compound Interest formula helps in solving the Simple Interest and Compound Interest Problems for bank exams. In this article, we have provided the Simple Interest and Compound Interest formula, what is the formula for simple interest? Difference between Simple Interest and Compound Interest, what is the formula of simple interest? Simple Interest important formulas, simple interest formula, simple and compound interest formula, simple and compound interest examples with solutions, simple and compound interest Problems, Simple Interest and Compound Interest formula pdf, Simple Interest and Compound Interest formula with examples, Simple Interest and Compound Interest formula sheet, Simple Interest and Compound Interest formula with example pdf, Simple Interest and Compound Interest formula tnpsc, Simple Interest and Compound Interest formula aptitude, Simple Interest and Compound Interest formula for cat, Simple Interest and Compound Interest formula for bank exams, Simple Interest and Compound Interest for competitive exams, Simple Interest and Compound Interest for SBI PO, and Simple Interest and Compound Interest for bank exams. Candidates can make use of this article to improve their preparation for upcoming competitive examinations.

Simple Interest and Compound Interest Formula PDF For Bank Exams

Simple interest and compound interest formula pdf for bank exams are added in this Simple interest and compound interest formula for bank exams post. The Simple interest and compound interest formula pdf for bank exams will help you to achieve more marks in the exams with speed and accuracy. Most importantly Simple interest and compound interest formula pdf for bank exams will be useful to make your calculations simpler and it saves your time to concentrate on other questions in the bank exams. Download the Simple interest and compound interest formula pdf for bank exams to know the difference between simple interest and compound interest and various simple interest and compound interest formula, simple interest and compound interest formulas with examples for your future reference. 

Download Simple Interest and Compound Interest formula PDF

 

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Simple Interest and Compound Interest Formula For Bank Exams: 

The various types of simple interest and compound interest formulas for bank exams are attached in this simple interest and compound interest formula pdf for bank exams post. Candidates can go through this simple interest and compound interest formula for bank exams article to know more about the difference between the simple interest and compound interest formula for bank exams. You can refer to the simple interest and compound interest formula with examples to know how to solve the questions using the simple interest and compound interest formula. 

What is the formula for Simple Interest?

Simple interest is the interest calculated on the amount initially invested or loaned. It is a method for calculating the interest earned or paid on a certain balance in a specific period. The simple interest formula is,

Simple Interest (SI) =  PXRXT / 100

where, P = Principal

R = Rate of Interest

T = Time

What is Compound Interest Formula?

Compound interest is the addition of interest to the principal sum of a loan or deposit. Compound interest is calculated based on the principle, interest rate, and the time period involved.

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

Where, P = Principle

R = Rate of Interest

T = Time

n = number of times interest got compounded annually 

Amount = P ( R/100 )n

Where, P = Principal

R = Rate of Interest

T = Time

  • If interest is compounded Half Yearly,

If interest is compounded Half yearly Then, we should consider n=2, 

Hence the formula for  Amount A = P*[1+ (r/2*100)]2n

Compound Interest = Total amount – Principal

 

  • If interest is compounded Quarterly, 

If interest is compounded Quarterly Then, we should consider n=2, 

Hence, Formula for  Amount A = P*[1+ (r/4*100)]4n

Compound Interest = Total amount – Principal

 

  • If interest is compounded Monthly, 

If the interest is compounded monthly then, n=12. 

Hence, formula for  Amount = P ( 1 + R/100 X 12 )12T

Difference Between Simple Interest and Compound Interest

Before going to practice the questions with the simple interest and compound interest formula you have some knowledge about the difference between the simple interest and compound interest. In this simple interest and compound interest formula for bank exams article, we have provided the difference between simple interest and compound interest. So aspirants can go through this simple interest and compound interest formula pdf to be proficient with the difference between simple interest and compound interest, simple interest and compound interest formula for bank exams. 

 

Difference Between Simple Interest and Compound interest

Simple Interest

Compound Interest

The simple interest is same for all the years

The compound interest is different for all the years

Simple Interest is less than Compound Interest

Compound Interest is greater than simple Interest

Simple Interest (SI) =  P X R X T100

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

The principal amount is constant in such a type of interest

The principal amount varies during the complete borrowing period

 

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Simple Interest and Compound Interest Formula With Examples

Here we have provided some simple interest and compound interest formulas with examples using the simple interest and compound interest formula for bank exams. Candidates shall download the simple interest and compound interest formula pdf for bank exams to know the simple interest and compound interest formula, the difference between simple interest and compound interest, simple interest and compound interest formula with examples for your future reference. 

Example 1: Find the amount that was invested at 5% annual simple interest for 4 years to earn Rs 3500.

Solution:

Assume that the principal value is P.

Rate of interest is, R = 5% = 0.05.

Time is, T = 4 years.

Amount is, A = 3500.

Using the simple interest formula of amount,

A = P (1 + RT)

3500 = P (1 + 0.05 · 4)

3500 = 1.2 P

Dividing both sides by P,

P = 3500/1.2 = 2916.67

Example 2:  Find the compound interest on Rs. 13000 at 10% for 2 years, compounded annually.

Solution:
Principal = P = Rs. 13000
Rate of interest = r = 10%
Time = t = 2 years
Amount on CI = P(1 + r/100)2
= 13000(1 + 10/100)2
= 13000 (1 + 0.1)2
= 13000(1.1)2
= 13000 × 1.21
= 15730
CI = Amount on CI – Principal
= Rs. 15730 – Rs. 13000
= Rs. 2730
Therefore, the compound interest = Rs. 2730

We hope that this simple interest and compound interest formula will be useful for your upcoming bank exams and other competitive exams. By utilizing this article, you will get to know about the various simple interest and compound interest formulas, difference between the simple interest and compound interest, simple interest and compound interest formula with examples for your reference. Keep in touch with our Guidely team to achieve victory in future competitive examinations. 

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Simple Interest and Compound Interest Formula For Bank Exams FAQs

Q. What is the formula for Simple Interest?

A. Simple Interest (SI) = P X R X T100

where, P = Principal

            R = Rate of Interest

            T = Time

Q. What is the formula for Compound Interest?

A. Compound Interest ( CI ) = P ( 1 + R100 )n - P

Where, P = Principal

            R = Rate of Interest

            T = Time

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