Question

21.
By what percent the yearly compound interest on Rs. 2000 for 3 years at 10% p.a. is more than the
simple interest on Rs. 3000 for 2 years at 8% p.a ? Find it.
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Answer 1

Answer:

The principle of compounding growth is used extensively in the financial world to transform small savings into a big corpus over time. It’s also the underlying idea behind MBA topics such as time value of money and discounted cash flow (DCF) valuation.

Learn about simple and compound interest concepts as you’ll need them not only for entrance exams but in the real world too, especially after you become rich and famous.