![]() |
|
Compound Interest |
You can calculate compound interest mentally
Question Find the compound interest on Rs 2500 @
12% P.A. for two years
This method is very useful if time is in 2 units
Step
1
First we add rates Let it be A
Step
2
Multiply rates and divide by 100 Let it be B
Step
3
Add A and B It is our compound interest rate percentage for two
years .Take
percentage
12 + 12 + ( 12+ 12
) = 24 + 1.44 = 25.44
100
Find 25.44 % of 2500 and that is compound interest
625 + 11 =636 ( Again consult lesson no1 9 for fast percentage calculations)
Rs 636 is our compound interest