Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan. P = principal amount (the initial amount you borrow or deposit) r = annual rate of interest (as a deci...

1. Principal : The money borrowed or lent out for a certain period is called the principal or the SUM. 2. Interest : Extra money paid for using other’s money is called interest. Interest is the extra money paid by the borrower to the owner (lender) as a form of compensation for the us...

1. Partnership : When two or more people joins hands with a common goal to attain profits or run a business jointly, they are called Partners and the deal is known as Partnership . Every partner invests either time, money or his patents to help partnership firm to reap profits. 2. Ra...

Basic Definitions and Formulas Cost price (C.P.) : This is the price at which an article is purchased. Selling price(S.P.) : The price at which an article is sold, is called its selling price, Profit or Gain : If S.P. is greater than C.P. , the seller is said to have a profit or gain....

1. Concept of percentage : Percent implies “for every hundred” and the sign % is read as percentage and x % is read as x per cent. In other words, a fraction with denominator 100 is called a per cent. For example, 20 % means 20/100 (i.e. 20 parts from 100). This can also be written ...

1. Ratio: We use ratios to make comparisons between two things. When we express ratios in words, we use the word "to"--we say "the ratio of something to something else." Ratios can be written in several different ways: as a fraction, using the word "to", or with a ...

1. BODMAS Rule : This rule depicts the correct sequence in which the operation are to be executed, so as to find out the value of a given expression. BODMAS is a short form for Bracket, Of, Division, Multiplication, Addition and Subtraction. In some regions, PEDMAS (Parentheses, Exponents, D...

1. Decimal Fraction : Fractions in which denominators are powers of 10 are known as decimal fractions. A fraction written as a decimal. A decimal point separates whole numbers from decimal fractions for example, 1/10 = 1 tenth = .1 1/100 = hundredth = .01 99/100 = 99 hundredths = .99 ...

1. Average refers to the sum of numbers divided by n. Also called the mean average. Average Formula = Sum of observations/ Number of observations Some important properties of average are: When the difference between all the items is same (and the number of terms is odd), then...