Finance word problems integrate multiple concepts. Steps: (1) Identify principal, rate, time, type (SI/CI); (2) Set up formulas; (3) Calculate systematically; (4) Verify with units. Common types: (a) Loan repayment: Calculate EMI using annuity formula; (b) Investment returns: Compare different options; (c) Growth/Depreciation: Track value changes; (d) Blended rates: Average multiple investments. Example: Borrow 100,000 at 12% p.a. for 5 years. EMI = P × [r(1+r)^n]/[(1+r)^n - 1]. With monthly conversion: EMI ≈ 2224. Total paid = 133,440. Interest = 33,440. Shortcut: Organize given data in table; work step-by-step. Exam tip: Watch for trick questions (missing data, unclear timing). Always state assumptions.