Simple interest problems play a major role in quantitative aptitude test. It is bit difficult to score marks in competitive exams without knowing the shortcuts related to problems in simple interest. We might have already learned this topic in our school. Even though we have been already taught this topic in our higher classes in school, we need to learn some more short cuts which are being used to solve the problems in the above topic.
The only thing we have to do is, we need to apply the appropriate short cut and solve the problems in a limited time. This limited time will be one minute or less than one minute in most of the competitive exams.
Simple interest is the interest computed on the principal for the entire period of borrowing. It is calculated on the outstanding principal balance and not on interest previously earned.It means no interest paid on interest earned during the term of loan.
Formulas related to simple interest:
I = Pit
A = P + I
A = P + Pit
A = P(1 + it)
I = A - P
A = Accumulated value (final value of an investment)
P = Principal (initial value of an investment)
i = Annual interest rate in decimal
I = Amount of interest
t = Time in years
Not only to answer questions being asked in competitive exams, and also in our regular life, we need the knowledge of simple interest in lending and borrowing money. Students who are preparing to improve their aptitude skills and those who are preparing for this type of competitive test must prepare this topic in order to have better score. Because, today it is bit difficult to score marks in competitive exams without knowing shortcuts to related to simple interest. Whether a person is going to write placement exam to get placed or a student is going to write a competitive exam in order to get admission in university, they must be knowing shortcuts related to simple interest problems. This is the reason for why people must study this topic.
As we mentioned in the above paragraph, a person who wants to get placed in a company and a students who wants to get admission in university for higher studies must write competitive exams like placement test and entrance exam. To meet the above requirement, it is very important to score more marks in the above mentioned competitive exams. To score more marks, they have to prepare this topic. Preparing this topic would definitely improve their marks in the above exams. Preparing this topic is not difficult task. We are just going to remember the stuff that we have already learned in our lower classes
Students will learn, how and when they have to apply shortcuts to solve the problems which are related to simple interest. Apart from the regular shortcuts, students can learn some additional tricks in this topic simple interest problems. Already we are much clear with the four basic operations which we often use in math. They are addition, subtraction, multiplication and division. Even though we are much clear with these four basic operations, we have to be knowing some more stuff to solve the problems which are being asked from the topic simple interest in competitive exams. The stuff which I have mentioned above is nothing but the tricks and shortcuts which need to solve simple interest problems in a very short time.
Short cut is nothing but the easiest way to solve problems related to simple interest. In competitive exams, we will have very limited time to solve each problem. Then only we will be able to attend all the questions. If we do problems in competitive exams in perfect manner with all the steps, it will definitely take much time and we may not able to attend the other questions. So we need some other way in which the problems can be solved in a very short time. The way we need to solve the problem quickly is called as shortcut.
Here, we are going to have some simple interest problems such that how shortcuts can be used. You can check your answer online and see step by step solution.
1. In simple interest, a sum of money amounts to $ 6200 in 2 years and $ 7400 in 3 years. The principal is