March 6, 2025
Overview: Master compound interest with our expert guide on formulas and short tricks to solve compound interest questions for IPMAT 2025. Get practical tips and strategies to improve your exam performance and confidently tackle this key section.
Understanding compound interest is fundamental to your school mathematics and competitive exams like the IPMAT.
Unlike simple interest, which is calculated solely on the principal amount, compound interest is calculated on the principal amount plus any interest accumulated.
Solving these is quite easy as we have been used to solving them since school; nonetheless, solving them faster holds more priority during entrance exams like IPMAT.
This article outlines essential strategies and simple tricks to solve compound interest questions for IPMAT.
Before you know Tricks to Solve Compound Interest Questions for IPMAT, it's essential to understand the concept first.
Compound interest can be visualized as "interest on interest," where the amount you earn from an investment grows because you earn interest on both the money you initially put in and the interest that has been added to that amount.
Here’s the basic formula used to calculate compound interest:
Here T = Time
A = Amount
P = Principal
R = Rate of Interest
A = Amount = Principal + Compound Interest
N = Number of times interest is applied per period.
Read: How to Prepare Maths for IPMAT 2025
With their solution, some of the sample questions below will help you get the short tricks to solve compound interest questions for IPMAT.
Example: Calculate the difference in compound interest for 3 and 2 years.
Calculation:
Year | Principal at Start of the Year | Interest for the Year | Total at End of Year |
---|---|---|---|
1 | ₹6000 | ₹300 (5% of ₹6000) | ₹6300 |
2 | ₹6300 | ₹315 (5% of ₹6300) | ₹6615 |
3 | ₹6615 | ₹330.75 (5% of ₹6615) | ₹6945.75 |
Total CI for 3 years: ₹945.75 (₹300 + ₹315 + ₹330.75)
Total CI for 2 years: ₹615 (₹300 + ₹315)
Difference: ₹330.75 (Interest for the 3rd year only)
This method breaks down the compound interest year by year, allowing you to calculate or estimate CI over different periods quickly.
Here are the top 5 tricks to solve compound interest questions for IPMAT,
Trick 1
Trick 2
Trick 3
Trick 4
Trick 5
These 5 Tricks to Solve Compound Interest Questions for IPMAT will help you speed up when attempting questions.
Read: How To Solve Syllogism Questions for IPMAT 2025
Let's look at sample questions after learning the tricks to solve compound interest questions for IPMAT.
Below is the set of sample questions for you to practice:
To strengthen your concept, try solving the previous year's questions.
Read: How to Solve IPMAT Verbal Ability Questions 2025
Mastering the art of solving compound interest calculations quickly is crucial for success in the IPMAT.
By understanding and applying the short tricks to solve compound interest questions for IPMAT, candidates can efficiently tackle this section, allowing them to save time for more challenging problems, ultimately enhancing their overall performance in the exam.
To enhance your IPMAT preparation, you can enrol in the TopRankers crash course.
Frequently Asked Questions
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