# Simple and compound interest: Concept & Rules for Solution

Simple interest is an important and interesting Arithmetic chapter for all competitive examinations. Banking examiner asks several questions from this chapter, if you follow any question where Mathematics has enlisted as the part of the syllabus, obviously, asked two or more questions from the simple and compound interest math chapter. One thing more that this chapter is very easy if you memorize one formula. Because this formula is on an equation and you can make other formulas on the basis of this equation. Before moving to aptitude and the shortcuts formula of Simple and Compound Interest, we should have a basic concept. That is below.

## Terms of Simple & Compound Interest

Interest: - Interest is the extra money, which gives for using their money for a certain period.
The rate of Interest: - Rate of Interest usually symbolized as R%. That’s means R unit per hundred.
Principle: - Principle is the money which customer borrowed from the bank or keep in the bank for a certain period.
Time: - Whenever we calculate Interest aptitude, we will use time as the year. Sometime we should convert days or month into years. Generally, time is symbolized as T. It was the basic concept of Simple interest aptitude. Now I’m giving you the equation of formulas which will help you to solve Simple Interest aptitude in shortcut way and make others formula as well

Above equation is the heart and soul formula for the Simple Interest aptitude. We can solve basic aptitude from this chapter by this equation because we can also able to make other formulas on the basis of this equation. For competitive math. Let's see other formulas which are created depending on the above equation.

## Simple interest Shortcut Formula

We should learn more advanced and shortcuts formula for the Simple and compound interest math chapter for our competitive examination. We have just told the basic formula of simple Interest math chapter. Below, providing a few more essential and tricky simple interest formula for quick math solution of simple interest problems.
Math tricks 1: If some borrowed or invested money become double with interest in T years, then the yearly rate of interest will be
Math tricks 2: If the principle increase X time with an interest in T years then the rate of interest per anum will be

Math Tricks 3: The principle became X with the interest if the were r% per anum, then find the time value in years?
In the next tutorial of simple interest solved aptitude, we will solve some aptitude in the quick methods using mentioned math tricks- from simple to exam level. After then we will give you a few more aptitude tricks of Simple interest in the 3rd tutorial. Hope you will read the next tutorial on simple interest math tricks.