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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.
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NID DAT 2025: Study Material | Preparation Guide | Mock Test
NID DAT 2025: Official Sample Paper with Solutions | Syllabus
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.) →
Let’s try to understand the comparison for both through an example :
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)
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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 ”.
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.
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.
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)
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
Similarly, if we wish to calculate for three years (03), we need three steps.
This method is rapid and accurate for calculating the Compound Interest for any duration of Time (T = 1, 2, 3 years)
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.
Aspiring students can prepare for Simple and Compound interest according to the NID 2025 DAT Exam pattern with the help of following tips:
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.
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.
Memorise the Values/Rates for Fast Application: Remember the compound interest table, as provided above, for up to 04 years.
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.
Q: An amount of ₹15,000 is invested at an annual rate of 12% for 3 years. Find the CI using:
The traditional formula
Ratio Multiplication Technique
Solution:
To calculate compound interest (CI) using the traditional formula, we use:
To calculate compound interest (CI) using Ratio Multiplication Technique, we use:
Principal (P) = ₹15,000
Annual interest rate (r) = 12%
Time (t) = 3 years
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.
By practising the fractions method for simple interest and ratio method for compound interest, students can reduce the time for the questions.
It has been observed in the past that questions on both topics were asked in the NID DAT Exam 2025.
Hello,
Yes, it's possible to prepare for the NID DAT 2025 exam on your own, even with limited time, by following these steps:
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:
Familiarize yourself with the NIFT entrance exam format:
Consider joining a coaching institute that specializes in NIFT preparation. They can provide structured guidance, practice tests, and expert feedback.
If you’re applying for design courses, develop a strong portfolio showcasing your creative work. Include sketches, designs, and any relevant projects.
Solving past years' question papers helps you understand the exam pattern and types of questions. It also aids in identifying important topics.
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 Exam Pattern (General Expectations):
Here is a general idea of what the prelims might cover, though the specific weightage and question types can vary:
Mains Exam Pattern (General Expectations):
The mains exam format is more program-specific, but might involve elements like:
I hope it helps!
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A visual merchandiser is a professional who makes it look astonishing by utilising his or her designing skills. Visual merchandising contributes to awareness and brand loyalty among consumers. An individual, in visual merchandising career outlook, plays a crucial role in fetching the attention of customers and bringing them to the store.
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