Question

shortcuts to solve simple interest and compound interest problems in ibps

Answer 1

Interest is payment from a borrower or deposit-taking financial institution to a lenderor depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.[1] It is distinct from a fee which the borrower may pay the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs.[2][3]
For example, a customer would usually pay interest to borrow from a bank, so they pay the bank an amount which is more than the amount they borrowed; or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In the case of savings, the customer is the lender, and the bank plays the role of the borrower.