Aptitude - Compound Interest - Discussion

Please give me a shortcut methods for competitive exams.

Pl send me the short cut method for compound interest calculation specially for more than 2 years.

Sir please send me any shortcut method for this question.

What is meaning of p.c.p.a ?

What is the meaning of PCPA?

Hi, sujatha & snehal PCPA means percentage per annum

Can any one know its simplest method to find out C. I.

Can any one explain me how 28 /25 came?

@Sugi.

28/25 is fraction if you directly divide 1+12/100 you will get 1.12.

The cube of 1.12 is 1.404928.

Hi friends, don't use any formulas for calculating compound interest.

Here I show a simple way for all.

Lets the principal amount be 25,000 rs here and time=3 years, rate of interest=12%. Firstly calculate the interest for 1 year==>25000*(12/100)=3000rs,

So if we want to find the compound interest in second year firstly just add the interest amount to the principal amount==>25000+3000=28000rs.

Then compound interest in 2 years=28000*(12/100)=3360rs,this is the compounded interest in 2 years..then now we just add the previous principal and interest calculated now..28000+3360=31360rs this is the principal amount now.. compounded interest in 3rd year=31360*(12/100)=3763.2rs.

So compounded interest for this amount and rate of interest after 3 years=3000+3360+3763.2=10123.20rs.

Does this concept of compound interest is understandable are not?