Short Tricks to Solve Compound Interest Questions for IPM and DU JAT 2023

We were all taught to calculate compound interest at a young age and have solved several problems in our Mathematics classes. We know that compound interest is the addition of interest to the principal sum of a loan or deposit.

In simple words, we can say that compound interest is the interest of your invested money + interest (interest of your invested money). 

Similarly, simple interest means when you get interested in your principal amount only. However, the compound interest is the interest on the principal sum and the interest earned on it.

Solving these are quite easy as we are used to solving them from school days, nonetheless solving them faster holds more priority during the entrance exams like IPM and DUJAT. 

This article brings you simple tricks to solve your compound interest problems.

The formula of compound interest is:

A = P{1 + R/100} nᵀ

Here T = Time

A = Amount

P = Principal

R = Rate of Interest

A = Amount = Principal + Compound Interest

N = Number of times interest applied per time period.

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Short Tricks to Solve Compound Interest Questions for IPM and DU JAT

There are some of the questions mentioned below with their solution that will help you to get the short tricks to solve compound interest questions for IPM and DU JAT 2023 Exam

Example: Calculate the difference in CI for 3 and 2 years. 

P = 6000, R = 5% P.A, 

The table below gives simple calculations by our experts in SuperGrads to solve CI. 

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For a detailed explanation watch our experts from SuperGrads

Now calculate the difference of 3-2 years. CI of only 3rd year. (As interest of 2 years is already included in 3 years. Therefore take only the last year) 

CI of only 3rd year = 330.75 (Sum of the last row =300+30+.75)

Similarly, we have a set of sample questions for you to practise. Contact our experts in case of any confusion during solving these CI problems. 

• Question 1: If P = 10000/-, T = 2 years 6 months, rate of interest = 20% compounded annually. Find Amount?
• Question 2: If P = 20,000, Rate of Interest = 3% p.a. Time = 2 years 3 months.Find Compound interest?

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• Question 3: If P = 7.30 lacs, Rate of Interest = 10% p.a. T = 2 years and 2 days. Find Compound Interest?
• Question 4: If P = 18000, Rate of Interest = 16.66%, Time = 1 year 73 days.  Find Compound Interest?
• Question 5: If P = 10400, Rate of Interest = 5%, Time = 1 year and 6 weeks. Find interest compounded annually.
• Question 6: If P = 8000, Time = 3 years, Rate of Interest = 1%, 2%, and 3%. Find CI – SI = ?
• Question 7: The differences between Simple interest and compound interest on a certain sum of money at 5% for 2 years are Rs. 3. Find the sum?
• Question 8: If the difference between Compound interest and simple interest on a certain sum of money at 5% p.a. for 3 years is Rs. 122. Find the sum?

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• Question 9: Simple interest on a sum of money for 2 years is Rs. 480 and Compound interest is Rs. 492. Find the sum and rate of interest?
• Question 10: Principal =? Time = 3 years, Rate of Interest = 15%, Compound interest – Simple interest = Rs. 1701. Find Principal value?