Tips To Solve Simple & Compound Interest Questions for NID 2025

Tips To Solve Simple & Compound Interest Questions for NID 2025

Edited By Ritika Jonwal | Updated on Dec 24, 2024 04:12 PM IST | #NID DAT
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Simple and Compound Interests are crucial topics that are asked in past years in the NID DAT exam. The questions are relatively straightforward and forward-scoring, so solving them efficiently in a time-bound manner with a traditional formula-based approach is challenging for most aspirants. In this article, we will compare the conventional formula-based approach with time-saving tricks to prepare aspirants for attempting the questions in a time-bound manner for NID 2025.

This Story also Contains
  1. Understanding Simple and Compound Interest for NID DAT 2025
  2. Understanding the Compound Interest for NID DAT 2025
  3. Preparation Tips for NID DAT 2025 Exam
Tips To Solve Simple & Compound Interest Questions for NID 2025
Tips To Solve Simple & Compound Interest Questions for NID 2025

Understanding Simple and Compound Interest for NID DAT 2025

According to the NID 2025 DAT Exam Syllabus, Students can prepare for Simple Interest and Compound Interest using the explanation and tips below:

Simple Interest: This is the method of calculating the interest on a given sum for a fixed rate of interest(R) on the Principal Amount(P) for a given duration of Time(T).

Formula For Simple Interest (S.I.) → [P X R X T] / 100

Compound Interest Formula (C.I.) →

1735022661112


Simple Interest Traditional Vs. Advanced Trick Approach

Let’s try to understand the comparison for both through an example :

  1. Calculating the Simple Interest S.I.: The Regular Formula Approach

Ques: Calculate the S.I. (Simple Interest) for 2 years on Rs 12000, calculated for a rate of Interest of 10% for the given duration.

Ans: Solving by using the S.I. Formula

P = 12,000

R = 10%

T = 2 years

By Formula S.I. = (PXRXT) / 100

= (12000X10X2) / 100

= Rs 240 (for Two Years)


  1. Calculating the Simple Interest S.I.: The Fraction Trick

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*Instead of working with the Percentage, convert the Rate of Interest (R%) to fractions for a faster mental calculation.

Example : R = 10% can also be written as R = (1/10)

The Interest is 1/10th of the Principal(P) for the first and second years, respectively.

Solving by using the “Fraction Trick” Formula

P = 12,000

R = 1/10 of P

Interest Earned = [(1/10) X Rs 12000] X 2 years

= 120 X 2 years

= Rs 240

Mostly, the Calculation could be done mentally using the “Fraction Trick for

Simple Interest ”.

Understanding the Compound Interest for NID DAT 2025

Compound Interest: Compound interest is an extension of Simple Interest. Compound interest keeps on adding the interest generated in the principal amount. So, in compound interest is that the principal keeps on getting updated yearly.

Compound Interest Traditional Vs. Ratio Approach

Let's try to understand the faster approach for Compound Interest through a similar example:

Ques: Calculate the C.I. (Compound Interest) for 2 years on Rs 12000, calculated for a rate of Interest of 10% for the given duration.

  1. Attempting the question through the Formula based approach :

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1735022661022

Compound Interest = 12000 x [ 1 + (10/100)]2 - 12000

= 12000 x [ 1+.1]2 - 12000

= 12000 x [1.21] - 12000

= 14520 - 12000

= Rs 2520 approx( time consuming)

  1. Calculating the Compound Interest with a Ratio Approach:

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In this approach, we need to remember the table year-wise to calculate the compound interest for the desired number of years.

* Remember the table!

1 Year - 1

2 Years - 2: 1

3 Years - 3 : 3: 1

4 Years - 4: 6 : 4: 1

For the above example, where the interest is to be calculated for two years, the ratio :

Step 01: Calculate the Simple Interest for the first year, i.e. 10% of Rs 12000

= Rs 120

Step 02: Multiply the Interest in stages as shown with the given ratios

Interest @10% for Rs12000 in the first year = Rs 1200

If Calculating for 02 Years

1735022661565

Similarly, if we wish to calculate for three years (03), we need three steps.


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This method is rapid and accurate for calculating the Compound Interest for any duration of Time (T = 1, 2, 3 years)

Important Points for Compound Interest for NID 2025 Exam:

  • For Compound Interest, Interest is calculated based on both Principal and previously accumulated interest for previous years.

  • Mainly, questions are asked in DAT exams to calculate the interest for up to 4 years.

  • Compound interest Accumulates more Interest for the same duration than Simple Interest.

With Regular practice and memorising the predefined set of values, aspirants can reduce the calculation time for the S.I. & C.I. based questions for NID DAT 2025.

Preparation Tips for NID DAT 2025 Exam

Aspiring students can prepare for Simple and Compound interest according to the NID 2025 DAT Exam pattern with the help of following tips:

  1. Focus on Mental Maths: Speed and accuracy are two critical factors for scoring well in the NID DAT 2025. It is suggested that you practise calculation using either tricks or mental calculation to attempt more questions accurately in a given time frame.

  1. Practise With Approximation: Work on practising the 20-30 CI problems using the above-discussed Ratio method for the Compound Interest. Developing any logic in passive memory requires some practice to develop the habit of solving problems.

  1. Memorise the Values/Rates for Fast Application: Remember the compound interest table, as provided above, for up to 04 years.

  1. Break Complex Calculations: Calculate the values in chunks manually. We can calculate the P x R at a time and divide the overall operations into smaller chunks to push the “Mental Calculations”, avoiding multiplying all values simultaneously.

Practice Questions for Simple and Compound Interest for NID 2025:

Q: An amount of ₹15,000 is invested at an annual rate of 12% for 3 years. Find the CI using:

  1. The traditional formula

  2. Ratio Multiplication Technique

Solution:

  1. To calculate compound interest (CI) using the traditional formula, we use:

1735022661372

1735022661845

  1. To calculate compound interest (CI) using Ratio Multiplication Technique, we use:

Principal (P) = ₹15,000

Annual interest rate (r) = 12%

Time (t) = 3 years

1735022662038

Frequently Asked Questions (FAQs)

1. What is the quick way to solve Simple Interest questions during the NID DAT 2025 Exam?

Students can use the fraction tricks as suggested in the article by replacing the percentage with the Fraction for faster calculations in the NID DAT 2025.

2. How can I reduce time for S.I. and C.I.-based questions in the NID DAT 2025?

By practising the fractions method for simple interest and ratio method for compound interest, students can reduce the time for the questions.

3. How frequently are the questions from these sections asked in the NID DAT Exam?

 It has been observed in the past that questions on both topics were asked in the NID DAT Exam 2025.

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Questions related to NID DAT

Have a question related to NID DAT ?

Hello,

Yes, it's possible to prepare for the NID DAT 2025 exam on your own, even with limited time, by following these steps:

  1. Understand the Syllabus : Focus on key areas like design principles, creativity, visualization, and observation skills.
  2. Solve Previous Papers : Practice with past NID DAT papers to understand question types and patterns.
  3. Time Management : Dedicate daily hours to sketching, problem-solving, and revision.
  4. Strengthen Drawing Skills : Practice daily to improve speed and accuracy.
  5. Use Online Resources : Utilize free tutorials, sample papers, and design blogs.
  6. Mock Tests : Take regular mock exams to assess progress and manage time efficiently.

Hope it helps !

Hello,

There are numerous websites which give free study material and classes to prepare for entrance exams NID DAT, UCEED, or NIFT. Here are a few popular ones:

YouTube: YouTube has many educators as well as institutes, which have been uploading free video lectures on important topics, on aptitude for design, and how to give these exams. Useful content can be found in the channels "Design Coach" and "NID Preparation".

You can download free courses offered on websites like Coursera, edX, and Khan Academy on the topics of design principles, creativity, and problem-solving skills.

Official Websites: Both NID and UCEED and also NIFT would usually release sample papers and previous question papers for self-preparation.

Study Groups: One can join online forums or social media groups which are dedicated to NID, UCEED, and NIFT preparation for peer-to-peer learning assistance.

The resource utilization would bring in good preparation for the exams and, therefore, increase in confidence.

Hello,

Preparing for the National Institute of Fashion Technology (NIFT) entrance exam involves focusing on several key areas. Here’s a structured approach to get you started:

1. Understand the Exam Structure

Familiarize yourself with the NIFT entrance exam format:

  • General Ability Test (GAT): Tests general knowledge, current affairs, and quantitative ability.
  • Creative Ability Test (CAT): Assesses your creative and visual ability through sketching and design-based questions.
  • Situation Test (for B.Des): Evaluates your ability to create a design from given materials.
  • Group Discussion and Personal Interview (for M.Des/MFM): Tests your communication skills, understanding of the fashion industry, and design knowledge.

2. Gather Study Materials

  • For GAT: Use general knowledge books, current affairs magazines, and quantitative aptitude guides.
  • For CAT: Practice sketching and drawing regularly. Books on design and creativity can be useful.
  • For Situation Test: Practice creating models from various materials and understanding design principles.
  • For GD/PI: Prepare by staying updated on fashion trends, industry news, and developing a strong portfolio.

3. Create a Study Plan

  • Daily Study: Allocate time for each section based on your strengths and weaknesses.
  • Weekly Goals: Set goals for completing practice papers and revising key concepts.
  • Mock Tests: Regularly take mock tests to simulate the exam environment and improve time management.

4. Enroll in Coaching Classes (if needed)

Consider joining a coaching institute that specializes in NIFT preparation. They can provide structured guidance, practice tests, and expert feedback.

5. Work on Your Portfolio

If you’re applying for design courses, develop a strong portfolio showcasing your creative work. Include sketches, designs, and any relevant projects.

6. Refer to Previous Years’ Papers

Solving past years' question papers helps you understand the exam pattern and types of questions. It also aids in identifying important topics.

7. Stay Updated

  • Follow fashion industry news to stay informed about trends and innovations.
  • Read relevant books and articles about design and fashion.

8. Practice Creativity

Engage in activities that boost your creativity, such as drawing, painting, or crafting. Keep experimenting with new ideas and techniques.

By focusing on these areas, you'll build a solid foundation for the NIFT entrance exam. Good luck with your preparation!

You can also refer to the following articles to better understand the NIFT examination and its preperation strategy :-

1. https://design.careers360.com/articles/how-prepare-for-nift-entrance-exam

2. https://design.careers360.com/exams/nift-entrance-exam


Hope it helps !

No, diploma or polytechnic students are generally not eligible to apply for the NID DAT exam.
The eligibility criteria for NID DAT typically requires a 10+2 qualification or its equivalent. This means you must have completed your higher secondary education to be eligible for the exam.

I hope this information helps.


Stages of the Exam:

The PG NID entrance exam typically consists of two stages:

  • Prelims: This written test might include objective and subjective questions to assess your design aptitude, creativity, problem-solving skills, and knowledge of design principles.

  • Mains: Candidates who qualify in the prelims are called for the mains stage, which usually involves a studio test, design exercises, and sometimes a personal interview. The specific format might vary depending on the chosen M.Des. specialization.

Prelims Exam Pattern (General Expectations):

Here is a general idea of what the prelims might cover, though the specific weightage and question types can vary:

  • Design Aptitude: This section might assess your visual thinking, observation skills, ability to identify patterns, and spatial reasoning. Expect questions on visual perception, mental ability tests, and basic design principles.

  • Discipline-Specific Test (for some programs): Certain M.Des. specializations might have a separate test focusing on the specific design discipline.

  • General Aptitude Test: This section might include questions on analytical reasoning, verbal ability, and general knowledge.

Mains Exam Pattern (General Expectations):

The mains exam format is more program-specific, but might involve elements like:

  • Studio Test: This hands-on test assesses your design skills, creativity, and ability to translate ideas into visual form. The specific task or materials used can vary depending on the chosen specialization.

  • Design Exercises: You might be presented with design challenges or problems to solve creatively. This assesses your approach to design thinking and problem-solving.

  • Personal Interview (for some programs): Some specializations might have a personal interview to assess your motivation, interest in the field, and understanding of the program.

I hope it helps!

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