1 General Mental and Psychological Abilities · 1.3.1 Percentages and commercial arithmetic

1.3.1.10 Compound interest: half-yearly and quarterly compounding, varying rates and growth

More frequent compounding means a smaller rate applied more often; convert every question into "rate per period, number of periods" and the formula A = P(1 + i)ᵐ does the rest.

  • APPSC Group 1
  • Advanced level
  • 5 min read
  • Full course

Key terms

  • half-yearly compounding
  • quarterly compounding
  • effective annual rate
  • varying rates
  • fractional years
  • finding time
  • finding rate
  • doubling time
  • rule of 72
  • growth

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Common trapsFoundation
  5. Quick revisionFoundation

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