Disadvantages of Simple Interest 1. Does Not Consider Compounding: Explanation: Simple interest only calculates interest on the original principal amount, not on the accumulated interest. This means that if we invest money, the interest earned does not earn additional interest, leading to potentially lower returns over time. Example: If we invest $1,000 at a simple […]
Read More →Compound interest – Meaning, Formula and Solved Examples Compound interest is a way of calculating interest where the interest earned over time is added back to the principal, so that the interest in the next period is calculated on the new total (which includes the previously earned interest). This means we earn interest on the […]
Read More →What is Simple and Compound Interest Simple Interest Definition: Simple interest is the interest calculated on the original principal amount for a specific period at a fixed rate of interest. Formula: Simple Interest (SI) = (P × R × T)/100 Where: P = Principal amount (the initial amount of money) R = Rate of interest per annum […]
Read More →Simple Interest Solved Examples Simple interest is a easy and quick method for calculating the interest charged on a loan or principal amount. The concept of simple interest is famous and used in many sectors such as finance, automobile and banking. Solved examples on simple interest will help us to understand to solve step-by-step different […]
Read More →Addition 1 To 5 For Kids Definition : Addition Addition is total amount of two or more numbers or things. or Taking two or more numbers and adding them together, is the sum or total of two or more numbers. How to add 1 in 1 Example: 1 + 1 = 2 In this example […]
Read More →Simple Interest: Definition, Examples and Formulas What is interest? First lets understand what is Interest. When we borrow money from a bank, we must pay a fee in addition to the amount borrowed. The extra money we pay is known as the interest. Interest is an additional amount of money that is paid by the […]
Read More →Simple Interest Word Problems Example 1: What is the simple interest and amount of $ 2000 at the rate of 8% per year for 2 1/2 years. Solution: Principal amount = P = $ 2000 Rate of interest per year = R = 8% Time for which it is borrowed = T = 2 1/2 year Thus, simple […]
Read More →Increase and Decrease Percentage Before learn calculating, percentage increase and decrease we will see that what is a percentage? Definition: A Percent is a number or ratio expressed as a fraction of 100, in other words Percent is a fraction of denominator 100. Percent is denoted by the symbol %. ‘Per’ ‘cent’ means out of 100. The […]
Read More →Addition – Definition and Examples In this section we will learn the basics of addition. (+) addition is a basic operation of arithmetic. To bring two or more numbers together and make a new number, is known as sum, add or total. Total is amount of two or more numbers or things. […]
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