Simple Interest Basic Concepts & Formulas

Duration: 16 min

This video lesson is available to enrolled students.

Return to /learn/DELOITTE-NLA/general-aptitude-quantitative-ability/simple-interest-and-compound-interest/simple-interest-basic-concepts-formulas-and-terminologies/asset-simple-interest-basic-concepts-formulas after enrolling

Inside: a video lesson and guided study material.

Module outline

  1. Language Skills (English): Vocabulary, Verbal Analogy (Word Based Analogy), Noun, Pronoun, Verb, Adjectives, Adverb, Preposition, Articles, Conjunction, Tenses, Modals, Subject Verb Agreement (Verb Noun Agreement), Determiner, Active Passive Voice (Voice), Direct and Indirect Speech, Sentence Correction (Error Correction), Sentence Completion (Fill in the blanks), Sentence Construction, Sentence Re-arrangements (Para Jumbles) (Narrative Sequencing), Comprehension / Reading Comprehension / Unseen Passages (Critical Reasoning) (Paragraph Questions), Cloze Test (Cloze Passage)
  2. General Aptitude (Quantitative Ability): Percentage, Ratio and Proportion (Ratios), Average, Profit and Loss, Simple Interest and Compound Interest, Time and Work, Pipe and Cistern, Speed Time and Distance, Mixture and Alligation, Age Problems, Partnership, Number System, HCF LCM, Divisibility Rules, Powers and Exponents (Surds and Indices), Algebra, Data Interpretation, Statistics, Sequence and Series (Series), Logarithm, Arithmetic, Speed Mathematics and Basic Mathematics
  3. General Aptitude (Reasoning Ability): Series (Number and Letter Series) (Numerical Relations and Reasoning), Coding Decoding, Syllogisms, Blood Relations, Directions (Direction Test), Ranking, Order and Sequence, Inequality, Logical Sequence Of Words, Seating Arrangements, Puzzle Solving (Puzzles), Non Verbal Reasoning (Spatial Aptitude) (Spatial Reasoning) (Visual Reasoning), Cubes & Dices, Venn Diagram, Deductive and Inductive Reasoning (Logical Deduction and Induction) (Prepositional Reasoning), Selection Decision Table (Decision Making), Analytical Reasoning (Counting Figures Reasoning), Clock, Calendar, Data Sufficiency, Analogy
  4. Technical Skills MCQ - Data Structure: Introduction to DS, Array, Stack, Queue, Linked List, Tree, Graphs, Hashing
  5. Technical Skills MCQ - Networking: Introduction to CN, Data Communication, DLL: Access Control, DLL: Flow Control, DLL: Error Control, DLL: Framing, Data Link Layer - Ethernet, Net Layer: IPv4 & Proto, Net Layer: IP Addressing, Net Layer:Routing Protocol, Transport Layer Services, Application Layer, Mobile Technology, Network Security
  6. Technical Skills MCQ - Operating System: Introduction to OS, Process Management, CPU Scheduling, Process Synchronization, Deadlock, Threads & Process Creation, Memory Management, Virtual Memory, File Management, Windows OS, Linux OS, Security, Virtual Machines
  7. Technical Skills MCQ - DBMS: Basics of DBMS, ER Diagram, Relational Model & Functional Dependencies, Keys & Integrity Constraints, Normalization (1NF - BCNF), File Organization & Indexing, Relational Algebra, SQL, Transaction Management, Concurrency Control, Database Recovery, Database Security & Authorization, NoSQL
  8. Technical Skills MCQ - Software Engineering: Fundamentals of Software Engineering, Software Requirements and Quality Assurance, Software Design, Estimation and Metrics, Software Testing, Software Maintenance and Configuration Management
  9. Technical Skills MCQ - Cloud Computing: Emerging Tech Trends, Cloud Computing and IoT
  10. Technical Skills MCQ - Cyber Security: Cyber and Info Security, Security in Mobile and Wireless Computing
  11. Technical Skills (Coding): Coding Questions by Yash Sir, C Programming by Yash Sir, Programming in C++, Java, Python for Placements by Yash Sir, Object Oriented Programming (OOPS)
AI summary & chapters

AI Summary

An AI-generated summary of this video lecture.

This educational video provides a comprehensive lesson on Simple Interest, a fundamental concept in finance. The instructor begins by introducing the topic with a title slide and then proceeds to define the key variables: Principal (P), Rate of Interest (R), and Time (T). The core formula for calculating Simple Interest (SI) is derived step-by-step as SI = (P * R * T) / 100. The video uses a practical example with a principal of Rs. 100, a rate of 6% per annum, and a time of 3 years to demonstrate the calculation, showing that the interest for each year is Rs. 6, leading to a total interest of Rs. 18. The concept of the total amount (A), which is the sum of the principal and the interest (A = P + SI), is also explained. The lesson then moves to a problem-solving section, where the instructor demonstrates how to find the principal when the amount, rate, and time are known, using the formula P = (Amount * 100) / (100 + R*T). A final example calculates the amount and interest on a principal of Rs. 6000 at 6% for 2 years, resulting in an interest of Rs. 720 and a total amount of Rs. 6720. The video concludes with a 'Thank You' screen.

Chapters

  1. 0:00 – 2:00 00:00-02:00

    The video opens with a title slide featuring the text 'SIMPLE AND COMPOUND INTEREST' over an image of coins and a graph. This transitions to a presentation slide with a title 'Simple Interest and Compound Interest' and a subtitle 'Basic To Advance - by YASH JAIN'. The slide includes a visual of a house made from a dollar bill and stacks of coins. The instructor, Yash Jain, appears in a small window in the bottom right corner. The main content slide is titled 'Simple Interest' and has a decorative background with confetti. A copyright notice for 'KNOWLEDGE GATE EDUVENTURES' is visible at the bottom of the screen.

  2. 2:00 – 5:00 02:00-05:00

    The instructor begins the lesson by writing the formula for Simple Interest on the screen. He defines the variables: P = Rs. 100 (Principal), R = 6% (Rate of Interest), and T = 3 years (Time). He explains that the interest for one year is calculated as R% of P, which is 6% of 100, resulting in Rs. 6. He then shows that for 3 years, the total interest is 3 times the annual interest, which is 3 * 6 = Rs. 18. The total amount is calculated as Principal + Interest, which is 100 + 18 = Rs. 118. The instructor then derives the general formula for Simple Interest: SI = (P * R * T) / 100.

  3. 5:00 – 10:00 05:00-10:00

    The instructor continues to explain the formula for Simple Interest, writing it as SI = (P * R * T) / 100. He then shows how to calculate the total amount (A) as A = P + SI, which simplifies to A = P(1 + RT/100). He demonstrates how to find the principal (P) when the amount (A), rate (R), and time (T) are known, using the formula P = (Amount * 100) / (100 + R*T). He provides an example where the amount is Rs. 112, the rate is 6% per annum, and the time is 2 years. He calculates the total interest as 12% of the principal, leading to the equation 112 = P + 0.12P, which simplifies to 112 = 1.12P. He then solves for P, finding the principal to be Rs. 100.

  4. 10:00 – 15:00 10:00-15:00

    The instructor presents a new problem: 'Find the amount & simple interest on Rs. 6000 at the rate of 6% per annum for 2 years?'. He identifies the values: P = Rs. 6000, R = 6%, T = 2 years. He calculates the total interest as 12% of the principal, which is 12% of 6000. He shows the calculation: (6000 * 6 * 2) / 100 = 720. The simple interest (SI) is Rs. 720. He then calculates the total amount (A) as P + SI, which is 6000 + 720 = Rs. 6720. He also shows an alternative method by calculating the interest for one year (6% of 6000 = 360) and then for two years (2 * 360 = 720).

  5. 15:00 – 15:37 15:00-15:37

    The video concludes with a final slide that displays the text 'THANK YOU FOR WATCHING' in large, orange and white letters against a black background. This is the end screen of the educational video, signaling the completion of the lesson on Simple Interest.

The video provides a clear and structured lesson on Simple Interest, progressing from foundational definitions to complex problem-solving. It begins by establishing the core formula, SI = (P * R * T) / 100, and uses a concrete example to illustrate the concept of interest accumulation over time. The instructor effectively demonstrates the derivation of the formula and its application in various scenarios, including finding the total amount and the principal when other variables are known. The use of step-by-step calculations and multiple examples ensures a comprehensive understanding of the topic, making it suitable for students learning financial mathematics.

Loading lesson…