How to find COMPOUND INTEREST FOR
2 YEARS/ 3 YEARS IN MOST SIMPLE WAY
TRICK FOR 2 YEARS COMPOUNDED ANNUALLY
M = RATE * TIME . (Rate)^2
CI = ( PRINCIPAL * M ) / 100
suppose u have to find C.I on Rs. 19000 for 2 years at 6% annually..6*2 . 6^2 = 12.36
the answer is Rs.2348.4
TRICK FOR 3 YEARS COMPOUNDED ANNUALLY
M = RATE * TIME . (RATE^2)*TIME (RATE^3)
CI = (PRINCIPAL * M)/100
6 x 3 . 6 x 6 x 3. 6 x 6 x 618 /108 / 216
19.1016 .... ( how this comes..)
explanation -
18 /108 / 216
18 / 108+2 / 16
18+1 / 10 / 16
19.1016
CI = (19000 * 19.1016)/100 = 3629.304
NOTE-- there is increase of approx. 4 after 10% in 3 years.
you can find the answer using the traditional formula also but this method will reduce your time consumption to great extent.