Interest is a fee paid for borrowing money or other assets, the amount borrowed is called the principal. The interest is expressed as a percentage rate of the principal for a given time interval. Interest is the cost of using somebody else’s money. When you borrow money, you pay interest. When you lend money, you earn interest. The two main categories of interest are – Simple & Compund Interest.
The technique of Simple & Compound Interest can be applied in real life. Loans such as instalments loans, auto loans, educational loans, mortgages use simple interest. The compound interest is used by most of the savings account as it pays the interest. To help you master the art of solving Interest MCQs, Knowvation has come up with many quizzes on Simple & Compound Interest with clear explanations of the questions. These quizzes will be very helpful for all the government exams and especially exams like IIFT, CAT, XAT, CMAT, TISSNET, MAT, SSC CGL, Bank exams, RBI Grade B, etc.
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