How do you say "understood" or "i got it" in Korean?
How do you say "understood" or "I got it" in Korean?

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알겠어요 is better than 알았어(요). 
알았어(요) is more like "I see" rather than "I understood". :-)

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네. Yes.
알았어요, 알겠어요. I got it, I see.
이해했어요. I understand.

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al-ass-eo-yo (for polite informal)

al-gess-eup-ni-da (for polite formal)

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simplest would be:

1) ne 네 (yes)
2) arasso 알았어 (i get it, i understand)

make sure your voice doesn't inclinate upwards, as this can represent a question, instead of an answer.