KurilooStudy·Practice·Succeed
Aptitude Topics

Financial Mathematics

Financial Mathematics focuses on money-related calculations such as simple interest, compound interest, present value, future value, and annuities. It is widely used in banking and finance exams.

Fundamental Principles

Simple Interest

SI = (P × R × T) / 100.

Compound Interest

CI = P(1 + R/100)^T − P.

Present Value

PV = FV / (1 + r)^n.

Future Value

FV = PV(1 + r)^n.

Essential Formulation Tips

  • Memorize key formulas (SI, CI, PV, FV).
  • Convert percentages into decimals.
  • Use approximation for faster solving.
  • Practice real-world financial problems.

Shortcut Execution Techniques

  • CI for 2 years: CI = P(2R + R²/100)/100.
  • Use shortcut for small interest rates.
  • Compare options to estimate answers.
  • Use ratio method where applicable.