Compound Interest

Find the Compound Interest is one of the difficult tasks when it comes in exams and consumes your valuable time. Here is a new approach to find out CI in a faster way. 

Lets' take a look:


* Find the CI of 5000 compounded annually for 2 years at 7% rate of interest?

Ans: Step 1:  7*2 =  14

         Step 2: 7² =     0049 

                                 14.49%

 Now 5000*14.49%= 724.50  This is your answer.

 [Note: For the second step for any number either 4 digit number or 3 digit or 5 digits, the last two digits must be free from above and since we are taking square of 7% in the second step as stated so we put point (.) before 2 digits from the last]

Let's take another example:

* Find the CI of 4000 compounded annually for 3 years at 6% rate of interest?

Ans:  Step 1:   6*3     =    18

          Step 2:  3*6²  =        108

          Step 3:  6³ =                216

                                        19.1016%   
 [ since we are taking square of percentage i.e 6% so we put point(.) 4 digits from the last]

now 4000*19.1016% = 764.064.   This is your answer.

Practice this type of calculation multiple time to have a good expert hand of CI

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