for Maths experts only pls!
By hennars
@hennars (250)
United Arab Emirates
December 12, 2006 11:54pm CST
Hi!
Myself's quite confused with all kinds of stuff as I'm not so good @maths:-(
Can u pls pass me the secret or good thumb rule to memorize about Interest & Discount?
1)What is the difference between Simple Interest & Compound Interest?
How you can make put simple interest or Compound Interest? Quite confusing!
2)In fact we know the rule of simple interest is total Amount=Capital + Interest.Can u give simple example pls?
3)Rule of compound Interest? example?
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4) What is simple discount?
Rule
Amount paid+ original price-Discount
example pls?
many txs 4 ur kind help
1 person likes this
8 responses
@cooldude8889 (2609)
• Singapore
16 Dec 06
1)
Simple interest is when you have a fixed interest every month like for example you owe someone $100.Simple interest of 1% a month so it would be $1 every month.
For compound intrest.
This is for the intrest you have to pay every month
1st month = $1
2nd month = $1 + 1st month ($1)
3rd month = $1 + 1st month($1) + 2nd month($1)
and so on...
@trkanaujia (68)
• India
13 Dec 06
Suppose you went to a bank and borrowed 100 dollars. Now, if the bank uses simple interest, then you will always have to pay the interest on 100 dollars. So, that way, the interest every year is same.
However, if the bank uses compound interest, then the interest on second year will be calculated on the principal of first year + the interest after first year.
Personally, I think that simple interest and compound interest are two of the easiest things in Maths. There is no specific rule to learn them. Just practice few times and you will understand the concept.
@ElusiveButterfly (45940)
• United States
13 Dec 06
Ha.....good luck my friend. Math to me is like Greek. I am known as the calculator queen. If I were to go back to school now I would have to get a tutor to help me.
@friend_sunit (62)
• India
13 Dec 06
a very good explanation has been above.... if u still don't understand, meet me sometimes on yahoo messenger with user name friend_sunit, i will make u understand it...
@friend_sunit (62)
• India
13 Dec 06
a very good explanation has been above.... if u still don't understand, meet me sometimes on yahoo messenger with user name friend_sunit, i will make u understand it...
@jrc_garcia (21)
• Philippines
13 Dec 06
Simple interest
I = Pni
F = P(1+ni)
where
I = interest
P = Principal amount
n = interest periods
i = rate of interst
F = accumulated amount
Compound interest
F=P(1+i)exp n
Discount
D = Fnd
P = F(1-nd)
where
D = Discount
P = Principal amount
n = discount periods
d = rate of discount
F = accumulated amount
@prasad1961 (5597)
• India
13 Dec 06
Simple interest is collected only on principle irrespective of time period along with principle. Compound interest is collected at fixed intervals on the priciple amount without recalling total principle amount. Discount is nothing but reducing the price to that extension. Reduced amount is called discount.
