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While studying with Cuemath, the fear of maths will go away.

What are the Differences Between Online Tuition and Offline Tuition?

- In offline tutorials, we have to go to the teacher’s place to take classes, while in online tutorials, we can take our classes at our place or any convenient place.
- Offline tutorials have a fixed schedule, which means if we are absent or late, we will miss the lessons. But in online tutorials, there is no chance of missing the lessons. We can take them whenever we want.
- In offline tutorials, there is so much disturbance around us, while in online tutorials there are no distractions or anyone who can disturb us.
- The lessons taught in offline tutorials can’t be repeated, but in online tutorials, we can record the lessons and rewatch them
- In offline tutorials, we get confused about whether we should listen or make notes, and because of this, we miss many parts of the lessons. But in online tutorials, we can do both without missing any part. We can listen to the tutor during class and can make notes after that by watching the recorded class or sometimes the tutor also provides the notes.

What do you understand about the Compound Interest Formula?

Compound interest is an interest calculated over the sum of principal and the interest over some time.

It is usually denoted by C.I.

It is mostly useful in the banking and finance sectors.

To calculate the compound interest over some time one must know the amount and principal sum.

So,

Compound interest formula = Amount – Principal.

To calculate the amount we have the formula,

Amount=Principal (1+r/n)^n*t

Where,

r=rate of interest at which sum is taken.

n = the number of times interest has been compounded.

t=time for which sum is taken.

**Example: **Find the compound interest on Rs. 10000 for one year at the rate of 15% per annum, if the interest is compounded half-yearly.

**Solution:**

Principal = 100000

a 15% rate

Time=1 year

Compounded half-yearly, so for 1 year (n) = 2.

So, according to the formula,

First, we have to find the amount,

Amount = Principal (1+r/n)^nt

Amount=10000 (1+15%/2%)2*1

Amount = 100000 (1+0.075)^2

Amount = 10000*1.075*1.075=11556.25

So C.I = Amount – Principal

C.I = 11556.25-10000

=Rs.1556.25

A few Examples of Compound Interest Formulas

**Example 1:** Ramesh takes a sum of Rs.6000 for 3 years with an interest of 10%. If the interest is compounded yearly, To find the compound interest.**Solution:**

Here,

Principal = Rs.6000

Rate=10%

Time=3 years

So, according to the formula:

First, we have to calculate the amount,

Amount = Principal (1+r/n)^n*t

Amount=6000 (1+10%/1)^1*3

Amount=6000*(1.1)^3

Amount = 6000*1.1*1.1*1.1

Amount = Rs.7986

C.I = Amount – Principal

C.I = 7986-6000.

C.I=Rs.1986.

**Example 2: **What will be the compound interest on Rs. 5000 in two years when the rate of interest is 10% per annum.**Solution:**

- Principal = Rs.5000
- Rate=10%.
- Time = years.
- First, we have to find the amount,
- Amount = Principal (1+r/n)^n*t
- Amount = 5000 (1+10%/1)^1*2
- Amount = 5000 (1+0.1)^2
- Amount = 5000*1.1*1.1
- Amount = Rs. 6050.
- Now,
- C.I = Amount – Principal
- C.I = 6050-5000
- C.I = Rs.1050.

A Few Examples of the Simple Interest Formula

**Example 1: **Rakesh borrowed Rs. 1000 for 2 years at a rate of 20% per annum. Calculate the interest at the end of the year.**Solution:**

- Principal = Rs.10000
- Rate =20%
- Time = years.
- According to the formula,
- S.I = (P*R*T)/100.
- S.I = (10000*20*2)/100
- S.I = 400000/100
- S.I = Rs.4000.

**Example 2: **Payal pays an amount of Rs.18000 on the sum of money Rs.15000 for 2 years. find the rate of interest.**Solution:**

- Amount=Principal+S.I
- 18000=15000+S.I
- S.I=18000-15000
- S.I=Rs.3000.
- Again,
- S.I=(P*R*T)/100
- 3000=(15000*R*2)/100
- 300000=15000*R*2
- R=300000/30000
- R=10.

To understand more about simple and compound interest and their types with examples, visit Cuemath. You can also download worksheets and puzzles created by them to practice questions.