Open App

UPSC Exam > UPSC Videos > CSAT Preparation > Hacks for solving Interest Questions

Hacks for solving Interest Questions Video Lecture | CSAT Preparation - UPSC

FAQs on Hacks for solving Interest Questions Video Lecture - CSAT Preparation - UPSC

1. What are some common formulas used to solve interest questions?

Ans. Some common formulas used to solve interest questions are: 1. Simple Interest (SI) formula: SI = P * R * T / 100, where P is the principal amount, R is the rate of interest, and T is the time period. 2. Compound Interest (CI) formula: CI = P * (1 + R/100)^T - P, where P is the principal amount, R is the rate of interest, and T is the time period. 3. Future Value (FV) formula: FV = P * (1 + R/100)^T, where P is the principal amount, R is the rate of interest, and T is the time period. 4. Present Value (PV) formula: PV = FV / (1 + R/100)^T, where FV is the future value, R is the rate of interest, and T is the time period.

2. What is the difference between simple interest and compound interest?

Ans. Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal amount and the accumulated interest. In simple interest, the interest remains constant throughout the time period, while in compound interest, the interest keeps increasing with each compounding period. Compound interest usually yields higher returns compared to simple interest for the same principal amount and time period.

3. How can I calculate the time period if the principal amount, rate of interest, and interest are given?

Ans. To calculate the time period, you can use the formula: T = (100 * SI) / (P * R), where T is the time period, SI is the simple interest, P is the principal amount, and R is the rate of interest. Similarly, for compound interest, you can use the formula: T = (log(FV/P)) / (log(1 + R/100)), where T is the time period, FV is the future value, P is the principal amount, and R is the rate of interest.

4. How can I calculate the principal amount if the rate of interest, time period, and interest are given?

Ans. To calculate the principal amount, you can use the formula: P = (100 * SI) / (R * T), where P is the principal amount, SI is the simple interest, R is the rate of interest, and T is the time period. Similarly, for compound interest, you can use the formula: P = FV / (1 + R/100)^T, where P is the principal amount, FV is the future value, R is the rate of interest, and T is the time period.

5. Can you provide an example of how to solve a compound interest question?

Ans. Sure! Let's say you invest $5000 at a compound interest rate of 8% per annum for a period of 3 years. To calculate the future value, you can use the formula: FV = P * (1 + R/100)^T. Plugging in the values, we get: FV = 5000 * (1 + 8/100)^3 FV = 5000 * (1.08)^3 FV = 5000 * 1.2597 FV = $6298.50 Therefore, the future value after 3 years would be $6298.50.

About this Video

1.2K Views

4.98/5 Rating

Jul 10, 2025 Last updated

Related Exams

UPSC Bank Exams Telangana Police Constable SSC MTS / SSC GD Agriculture Exams PPSC PCS (Punjab) DSSSB TGT/PGT/PRT UGC NET RRB Group D / RPF Constable NDA

Video Description: Hacks for solving Interest Questions for UPSC 2025 is part of CSAT Preparation preparation. The notes and questions for Hacks for solving Interest Questions have been prepared according to the UPSC exam syllabus. Information about Hacks for solving Interest Questions covers all important topics for UPSC 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Hacks for solving Interest Questions.

Introduction of Hacks for solving Interest Questions in English is available as part of our CSAT Preparation for UPSC & Hacks for solving Interest Questions in Hindi for CSAT Preparation course. Download more important topics related with notes, lectures and mock test series for UPSC Exam by signing up for free.

Description

Video Lecture & Questions for Hacks for solving Interest Questions Video Lecture | CSAT Preparation - UPSC - UPSC full syllabus preparation | Free video for UPSC exam to prepare for CSAT Preparation.

Information about Hacks for solving Interest Questions

Here you can find the meaning of Hacks for solving Interest Questions defined & explained in the simplest way possible. Besides explaining types of Hacks for solving Interest Questions theory, EduRev gives you an ample number of questions to practice Hacks for solving Interest Questions tests, examples and also practice UPSC tests.

	CSAT Preparation 211 videos\|145 docs\|140 tests

CSAT Preparation

211 videos|145 docs|140 tests

Join Course for Free

Explore Courses for UPSC exam

practice quizzes

pdf

Important questions

Exam