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**Maths Shortcuts & Mind Tricks to Solve Problems Related to Compound Interest**

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Hello Friends, Today we are going to explain you a shortcut method
on a question related to Compound Interest. As in the Exam Hall, our every
second is very important & if we solve the questions smartly we can
increase our number of attempts easily. So that’s why it is very important to
learn the shortcut methods so that we can attempt maximum questions in minimum time.
But only learning them will not give you any benefit until you not do practice.
Only by doing Practice daily you can improve your speed & accuracy. Hope
this article will be helpful to you. Thank You Friends.
Happy Learning !! J

Q) Find the compound interest occurred on a principle of amount of
Rs. 14,000 at the interest rate of 2% per annum for the period of 2 years?

Solution:

We have given:

Principle (P) = Rs. 14,000

Rate of interest (R) = 2%

Time Period (T) = 2 years.

First we solve the above
Problem by using Normal Method:

**As we know,**

**Amount**= P × [1 + (R /100)]

^{T}

**Compound Interest**= Amount – Principle

By Substituting the given
values in the above formula, we get

Amount = 14,000 × [(1 + (2/100)]

^{2}
= 14,000 × [(100+2)/100]

^{2}^{ }=

^{ }14,000 × (1.02)

^{2}

= 14,000 × 1.0404

= Rs 14565.6

Now As,

**Compound Interest**= Amount – Principle

= 14565.6–
14,000

= 565.6

*Therefore, Rs 565.6 is the required Compound Interest that we get after two years.*
As we can see the above method includes lot of calculation,
therefore if we use this method it will take more than one minute to find out
the required answer & as we can’t afford so much time to only one question,
so we will solve this question by using the below shortcut method.

Shortcut
Method:

Step
1: As we have
Given the Interest Rate = 2%

Therefore
First Find 2% of 14,000

If we use
the concept of Percentage Here, then we can find the value of 2% without using
Pen & Paper easily.

*To Learn the Concept of Percentage***CLICKHERE**
1%= Shift
Two Decimal to the Left Side

1% = 140

Therefore, 2%
= 140 × 2

= Rs 280

This is for
First year,

For 2 years,
it will be, 280 × 2 = Rs 560

Step-2: Now Divide the given Interest
Rate by 2.

i.e (2/2)%

= 1%

Now, find 1%
of Rs 560 (Use the Concept of Percentage Here)

1%= 5.60

Now, Step 1
+ Step 2:

= Rs 560+ 5.60

= Rs 565.6

*Therefore, Rs 565.6 will be the required answer.***Note:**This shortcut method is applicable to find the compound interest when we have the time period equal to 2 years only.

Now
Take Some More Example:

Q) Find the compound
interest occurred on a principle of amount of Rs. 8,000 at the Interest rate
of 3% per annum for the period of 2
years?

Solution:

Step
1: Find 3% of
Rs 8000

1% =80

3% = 80*3

=240

This is for
First year,

Therefore
for two years it will be 240 × 2 = Rs 480.

Step-2: Divide the given Interest Rate
by 2.

i.e (R/2)%

= (3/2) %

= 1.5%

Now, find
1.5% of Rs 480

As, 1%=4.8

Therefore,

0.5% = (1%/2) [Half of 1%]

=2.4

Therefore,
1.5% = (4.8+2.4)

=
7.2

Step3=Step 1 + Step 2

= Rs(480 + 7.2)

= Rs 487.2

*Therefore Rs 487.2 is the required Answer.*
Q) Find the compound
interest occurred on a principle of amount of Rs. 15,000 at the interest Rate
of 5% per annum after the period of 2
years?

Solution:

Step
1: 5% of Rs 15,000

10%= Shift One Decimal to the left

10%=1500

Therefore, 5%=10%/2

=1500/2

=750

For Two
Years, It will be 750 × 2 = 1500.

Step-2: Divide the given rate of interest
by 2.

i.e (R/2)%= (5/2)%

= 2.5%.

Now, find
2.5%of Rs 1500

As we Know, 2.5%=1%+1%+0.5%

Therefore, We
get

2.5% =
15+15+7.5

= 37.5

Step
3: Step 1 + Step
2:

= Rs (1500 + 37.5)

= Rs 1537.5

*Therefore Rs 1537.5 is the required Answer.*

*To Learn More Shortcuts***CLICKHERE**

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