Question

Can you give me shortcut formulas to solve questions of compound interest, simple interest, profit and loss, percentage, ratio and proportion... Which can help me to save time in my examination

Thanking you

Regards

Answer 1

First of all let us discuss the traditional method of solving simple interest question using the formula given below.

Where:

• S.I. = Simple Interest (
• P = Principal Amount
• R = Rate of Interest
• T = Time

These are total 4 parameters given in above formula. In commonly asked question the value or the condition for any 3 parameters will be given and we have to find out the value of remaining 4th parameter. We can solve all the questions using this formula but the key problem in exam is of time. Simple Interest questions using above formula become little lengthy.

So to overcome this problem and save your important time in exam we have developed some super awesome short tricks to solve all types of questions of Simple Interest topic just within 5 to 10 seconds. Lets start with a basic example.

Suppose a simple interest is levied on an amount for 5 years at a rate of 10% annually.

So the rate of interest for first year = 10%

Similarly, for second, third, fourth and fifth year = 10% each

So the total rate of interest for all 5 years = 10+10+10+10+10 = 50%

Note: This is simple interest so no interest on interest levies in it. That is why we sum up the rate of interest for all the given years to find our the total interest.