Simple Interest and Compound Interest Questions and Answers For Bank Exams
INTEREST : Interest is the price paid by borrower for the use of a lender’s money.if you borrow some money from a person for a particular period you would pay more money than your initial borrowing . This excess money paid is called interest.
SIMPLE INTEREST : If the principal remains the same for the entire period or time then interest is called as simple interest
SIMPLE INTEREST=P*R*T/100
COMPOUND INTEREST : The compound interest as the interest that accrues when earnings for each specified period of time added to the principal thus increasing the principal base on which subsequent interest is computed.
COMPOUND INTEREST=P[(1+r/100)ᵀ-1]
Results
#1. Simple interest on Rs.3500 for 3 years at 12% per annum is ?
BY using Simple interest formula =P*r*t/100
where P=3500, r=12%, t=3 years
S.I = 3500*12*3/100
Simple interest = 1260
#2. If P=Rs.4500,A=Rs.7200, than simple interest i.e. I will be
P=4500, A=7200
by using formula
A=P＋S.I
7200=4500 ＋ S.I
S.I=7200-4500
=2700
#3. If P=Rs.1000, R=5%p.a, n =4;What is amount and compound interest is
If P = Rs. 1000, R = 5% p.a, t = 4; What is Amount and compound Interest?
Amount = p*(1 r)t
=1000*(1 5/100)4
= 1000(1.05)4
= 1000 * 1.21550
=1215.50
Compound interest =1215.50-1000
=215.50
#4. In how many years will a sum of money double at 5%p.a compound interest ?
#5. The present value of Rs. 10000 due in 2 years at 5% p.a. compound interest when the interest is paid on yearly basis is Rs._____.
#6. The time by which a sum of money would treble it self at 8% p.a. compound interest is
Hint :
using compound interest formula
P[(1 r/100)ᵀ]
treble means 3 times of principal
rate (r) = 8%
#7. A=Rs. 5200, R =5% P.a ,T= 6 years , P will be
using compound formula A= P(1 ＋ r/100)ᵀ
5200=p(1 ＋ 5/100)6
p=3880
#8. The compound interest on Rs. 4000 for 6 months at 12% p.a payable quarterly is
The 6 month = 6/3
=2 (for quarter year)
Rate 12% =12/4
=3 (for quarterly)
A=p*(1 r/100)t
= 4000(1 3/100)2
=4000* 1.06090
=4243.60
C.I = A-P
= 4243.60 – 4000
= 243.60
#9. What annual rate of interest compounded annually doubles an investment in 7 years? Given That 2 1/7 = 1.104090
Aᵑ= P(1 i)ᴺ
=2P=P(1 ＋ i)7
2 1/7=(1 ＋ i)
1.104090=1 ＋ i
i= 0.10409
rate of interest =10.41
#10. The difference between the S.I and the C.I on Rs. 2400 for 2 years at 5% p.a. is
#11. Rs. 100 will become after 20 yea rs at 5% p.a compound interest amount
#12. If P=5000,T=1,I=Rs.300,R will be
Hint:
by using simple interest formula = P*R*T/100
#13. P=Rs. 8500,A=Rs. 10200,R=12½ % SI , t will be
#14. In what time will Rs. 8000 amount to Rs. 8820 at 10% per annum interest compounded half yearly
Hint :
principal (P) = 8000
Amount (A)= 8820
An=p(S.I r)t
put the value formula
#15. Find the sum of The first 1000 positive integers
positive integers= 1,2,3,4,………….1000
by using formula Sn=n/2(a 1)
1000/2(1 1000)
500(1001)
500500
#16. How many three- digits numbers are divisible by 4?
three digits number 100,101,102……. 996………(996 last three digits number divisible by 4)
a=100;d=4;an=996
996=100 (n-1)*4
996-100=(n-1)*4
896=(n-1)*4
(n-1)=224
n=224 1
n=225
#17. A machine worth Rs.490740 is depreciated at 15% of Its opening value each year. When its value would reduce by 90%?
#18. The compound interest Rs. 40000 at 10% p.a. 16000 for 1 ½ years at 10% p.a. payable half yearly is
#19. A sum of money doubles itself in 10 years. the number of years it would triple itself is
#20. How many interest will be earned on Rs. 2000 at 6% simple interest for 2 years ?
using simple interest formula
SIMPLE INTEREST=P*R*T/100