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SubjectsMathematicsArithmeticChapter 3 — Profit, Loss & Interest3.3 Compound Interest

Topic 3.3 · Mathematics · Profit, Loss & Interest

Compound Interest

Compound Interest is studied as part of "Profit, Loss & Interest" (Arithmetic) in Mathematics. Profit and loss, simple and compound interest, and discount problems test commercial arithmetic.

In the examination context, compound interest carries conceptual questions that test both factual recall and analytical understanding. Revise this topic in sequence with the rest of the chapter so that chronological and thematic links are clear.

Important Facts

Simple interest
PRT/100
Compound interest
P(1 + r/100)ᵗ − P
Profit
Selling price − cost price
Discount
Marked price − selling price

Key Points

  • Profit — Selling price − cost price
  • Discount — Marked price − selling price
  • Simple interest — PRT/100
  • Compound interest — P(1 + r/100)ᵗ − P

Important Names

——
Exam-Oriented Notes
  • »For CI vs SI over 2 years, the difference is P(r/100)². Selling price = CP × (100 ± gain%/100).

Related topics

3.1 Profit & Loss3.2 Simple Interest3.4 Discount & Marked Price
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