Popular Articles

P Railway Exam Practice and Preparation Online Tests

P LAW CET 2016 for three year and five year LLB courses

P LAW admission process 2016 for 3 year and 5 year LLB courses

P मराठी व्याकरण: अव्ययांचे प्रकार

P English Grammar Tenses explained in मराठी

P अर्थशास्त्र - अर्थव्यवस्थेची ओळख

P सेट परीक्षेला सामोरे जाताना.........

P महाराष्ट्राची भौगोलीक परिस्थिती

- SSC-CGL (Combined Graduate Level Examination, 2019) Last Date:- Nov 25, 2019

Share Now

__Preparing for Compound Interest Questions in Quantitative Aptitude Test__

Compound interest is another important terminology that everyone needs to understand; not just to quality a **career aptitude test**, rather it is also important to manage your finances. Compound interest terminology can help you determine how to ensure higher returns on your investments or savings.

There are so many interesting things to know about this concept. If you are preparing for some aptitude test, it is better to practice questions related to this section more often. The idea is to ensure proper flow with recommended formulas; accuracy must be your prime target, but at the same time, it needs proper utilization of time. If you want to crack an aptitude test online, it is better to go through the details below. In this article, we have defined a few essential terms related to compound interest.

__What is compound interest?__

Compounding, in simple words, can be defined as a process of growing. In case if you know about the snowball effect, you can easily solve the problems related to this concept. Note that, compound interest is in simple terms can be defined as interest earned on money that is already earned in the form of interest. With this cycle, the interest keeps on increasing, and the account is balanced at some increased interest rate. You can consider it something like exponential growth.

In order to understand the concept of compound interest, it is first important to start with simple interest. For example, you deposit money in the bank and then as per set interest rate policy, they will keep on adding some interest on your deposit. Let us consider that your deposited amount is $100, and the annual interest rate is 5%; it means, after one year, you will earn $5.

After this, we can consider the concept of compounding. In this case, you can earn interest on the initial deposit as well as on the interest that you have earned previously. It means you will first earn 5% on the original deposit amount of $100 and then 5% on the new $5 that you recently obtained from the bank as per their policy.

__Compound Interest in Quantitative Aptitude questions:__

There are so many methods to calculate compound interest. It can help you to achieve higher scores with ease in **career aptitude test**s. The basic formula for calculating compound interest is given below:

A = P (1 + [R / N]) ^ NT

Here: A stands for the amount that you need to calculate.

P = Initial deposit made by the person; it is also known as Principle.

R = Rate of interest that is calculated annually.

N = Number of compounding periods on a yearly basis. For instance, it can be 52 weeks or 12 months.

T = Total time for which money is compounded.

You can also find several short cuts to solve these problems so that more questions can be solved in lesser time while appearing in an aptitude test.

Candidates preparing for following competitive exams can utilize Aptitude section to improve their skills.

- Bank Competitive Exam
- MPSC Competitive Exams
- SSC Competitive Exams
- L.I.C/ G. I.C Competitive Exams
- Railway Competitive Exam
- University Grants Commission (UGC)
- NET/ SET Competitive Exam
- Common Aptitude Test (CAT)
- Career Aptitude Test (IT Companies)

Popular Articles

P Railway Exam Practice and Preparation Online Tests

P LAW CET 2016 for three year and five year LLB courses

P LAW admission process 2016 for 3 year and 5 year LLB courses

P मराठी व्याकरण: अव्ययांचे प्रकार

P English Grammar Tenses explained in मराठी

P अर्थशास्त्र - अर्थव्यवस्थेची ओळख

P सेट परीक्षेला सामोरे जाताना.........

P महाराष्ट्राची भौगोलीक परिस्थिती

Upcoming Exam Forms

SSC-CGL (Combined Graduate Level Examination, 2019) Last Date:- Nov 25, 2019 |

Full Length Mock Tests

Answers with Explanation**

Timer Based Exams

Instant Result and assesment

Detailed analasys of Result

UGC-NET / SET Paper 1 mock test

3 Mock Tests, 150 Questions with Explanations

Rs: 149 Only/-

Mock test for MH CET Law 2019 for three year law programme

3 Mock Tests, 450 Questions with Explanations

Rs: 249 Only/-

यू. जी. सी. - नेट पेपर १ (अनिवार्य) सामान्य प्रश्न हिंदीमें

3 Mock Tests, 150 Questions with Explanations

Rs: 149 Only/-

Copyright © GoPract.com 2016-2018. Developed by Chirate Technologies Private Limited