Mechanical Engineering Exam > Mechanical Engineering Videos > General Aptitude for GATE > Compound Interest Concept
Compound Interest Concept Video Lecture | General Aptitude for GATE - Mechanical Engineering
|
198 videos|165 docs|152 tests
|
FAQs on Compound Interest Concept Video Lecture - General Aptitude for GATE - Mechanical Engineering
| 1. What is compound interest and how does it work? |  |
Compound interest is the interest calculated on both the initial principal amount and the accumulated interest from previous periods. It works by reinvesting the interest earned back into the principal, allowing for exponential growth of the investment over time.
| 2. How is compound interest different from simple interest? | |
Compound interest differs from simple interest in that it takes into account the accumulated interest from previous periods, while simple interest only considers the initial principal amount. As a result, compound interest tends to generate higher returns over time compared to simple interest.
| 3. How can I calculate compound interest? | |
To calculate compound interest, you need to know the initial principal amount, the interest rate, and the time period. The formula for compound interest is: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time period in years.
| 4. What is the significance of compounding frequency in compound interest? | |
The compounding frequency refers to how often the interest is calculated and added to the principal. The higher the compounding frequency, the more frequently interest is added, resulting in greater overall returns. For example, if interest is compounded annually, you will earn less compared to when it is compounded quarterly or monthly.
| 5. Can compound interest work against me? | |
Compound interest typically works in your favor by accelerating the growth of your investments. However, if you have debts or loans with compound interest, it can work against you. In such cases, the accumulated interest can quickly accumulate, making it harder to repay the debt or loan in a timely manner.
Related Exams
About this Video
|
1.7K Views |
|
4.84/5 Rating |
|
Nov 21, 2024 Last updated |
Video Description: Compound Interest Concept for Mechanical Engineering 2024 is part of General Aptitude for GATE preparation.
The notes and questions for Compound Interest Concept have been prepared according to the Mechanical Engineering exam syllabus.
Information about Compound Interest Concept covers all important topics for Mechanical Engineering 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Compound Interest Concept.
Introduction of Compound Interest Concept in English is available as part of our General Aptitude for GATE for Mechanical Engineering & Compound Interest Concept in
Hindi for General Aptitude for GATE course. Download more important topics related with notes, lectures and mock test series for
Mechanical Engineering Exam by signing up for free.
Description
Video Lecture & Questions for Compound Interest Concept Video Lecture | General Aptitude for GATE - Mechanical Engineering - Mechanical Engineering full syllabus preparation | Free video for Mechanical Engineering exam to prepare for General Aptitude for GATE.
Information about Compound Interest Concept
Here you can find the meaning of Compound Interest Concept defined & explained in the simplest way possible.
Besides explaining types of Compound Interest Concept theory, EduRev gives you an ample number of questions to practice Compound Interest Concept tests,
examples and also practice Mechanical Engineering tests.
|
198 videos|165 docs|152 tests
|
|
Explore Courses for Mechanical Engineering exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
study material
,MCQs
,Viva Questions
,Previous Year Questions with Solutions
,mock tests for examination
,Extra Questions
,Semester Notes
,Objective type Questions
,Important questions
,Summary
,Compound Interest Concept Video Lecture | General Aptitude for GATE - Mechanical Engineering
,Exam
,ppt
,past year papers
,Compound Interest Concept Video Lecture | General Aptitude for GATE - Mechanical Engineering
,shortcuts and tricks
,video lectures
,practice quizzes
,Free
,Sample Paper
,Compound Interest Concept Video Lecture | General Aptitude for GATE - Mechanical Engineering
;
Study Compound Interest Concept on the App
Students of Mechanical Engineering can study Compound Interest Concept alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Compound Interest Concept,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Compound Interest Concept is prepared as per the latest Mechanical Engineering syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup