Simple and Compound Interest

The topic covers the concept of simple interest and derives its formula. It also defines the terms principal, interest, rate of interest per annum, time and amount. The exercises involve calculations for interest for multiple years.

This topic defines compound interest as the interest measured on the principal and the accumulated interest over the intervening period. It is different from the simple interest where interest is not applied to the principal.

This topic explains, the time and rate at which interest is compounded annually or half-yearly with the help of solved examples. It defines the term conversion period and derives compound interest formulas.