# GMAT Simple & Compound Interests Formulas | Interests Cheat Sheet [PDF]

by Naveen Kumar July 5, 2024 604

Simple Interest (S.I) and Compound Interest (C.I) is one of the easiest topics in GMAT quantitative section. GMAT aspirants are required to apply various formulas on Simple Interest and compound interest to solve various questions. Simple Interest (S.I) and Compound Interest (C.I) is one of the easiest topics in the GMAT quant section. One can expect a few questions to appear from this topic and students should definitely aim to get most of these questions right.
The number of concepts that are tested from these  topics is limited and most of the problems can be solved by applying the formulae directly. Many students commit silly mistakes in this topic due to complacency, which should be avoided. In Simple Interest, the principal and the interest calculated for a specific year or time interval remains constant.

In Compound Interest, the interest earned over the period is added over to the existing principal after every compounding period and thus, the principal and the interest change after every compounding period.

For the same principal, positive rate of interest and time period (>1 year), the compound interest on the loan is always greater than the simple interest.

Outline of various topics covered in Simple & Compound Interests formulas for GMAT PDF:

• Definition of Interests - Simple Interest and Compound Interest
• Formulas of Simple Interests
• Formulas for Compound Interets when calculated annually, quarterly and half yearly
• Compound Interets calculation when time is mixed fraction
• Present worth of an item, due in N years hence

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