Problems on Simple Interest and Compound Interest for bank exams

Simple Interest/Compound Interest Questions for IBPS PO, SBI PO, NIACL, NICL, LIC, Dena Bank PO PGDBF, BOI, Bank of Baroda and other competitive exams

Reena is borrowed a sum of RS. 6000 from Raveena at the rate of 14% for 2 years. She then added some more money to the borrowed sum and lent it to Sameera at the rate of 18% of simple interest for the same time. If Reena gained Rs. 650 in the whole transaction , then what sum did he lend to Sameera?
A) Rs.6427.12
B) Rs.8015.41
C) Rs.6472.22
D) Rs.7541.2
E) Rs.6758.2

View Answer
Option C
Solution:
Let the money lent to Sameera be Rs.x
Therefore ,
x*(18/100)*2 – 6000*(14/100)*2 = 650
=> x= 6472.22
The rate of interest on a sum of money is 4% per annum for the first 2 years , 6% per annum for the period next 4 years, 8% per annum for the period beyond 6 years.If the simple interest accrued by the sum for a total period of 9 years is Rs. 1680 ,what is the sum ?
A) Rs.3000
B) Rs.5000
C) Rs.4700
D) Rs.5500
E) Rs.7580

View Answer
Option A
Solution:
SI at the rate of 4% for 2 years ,
=( P* 4*2)/100 = 8P/100
SI at the rate of 6% for 4 years ,
(P*6*4)/100 = 24P/100
SI for the next 3 years
SI = (P*8*3)/100 = 24P/100
Total SI = 8P/100 + 24P/100 + 24P/100
=>P = (1680*100 )/56 = 3000
The simple interest on a certain sum for 2 years at the rate of 5% per annum is Rs.160. What would be the difference of compound interest and simple interest for the same period and at the same rate of interest?
A) Rs.2
B) Rs.10
C) Rs.6
D) Rs.4
E) Rs.8

View Answer
Option D
Solution:
For 2 years
SI = 5* 2= 10 % of the sum
CI = 5 + 5+ (5*5)/100 = 10.25% of the sum
required diff. = 10.25 – 10 = 0.25% of the sum
Therefore ,
the required diff. = (160/10) * 0.25 = Rs.4
What is the difference between CI and SI ,if sum is Rs.10,000 for 3 years at the rate of 3%?
A) Rs.42
B) Rs.30
C) Rs.27.27
D) Rs.35
E) Rs.25

View Answer
Option C
Solution:
Difference = [sum * r^2 (300 + r)]/(100)^3
= [10000 * 3 * 3 (300+3)]/(100)^3 = 27.27
Arjun lent out a sum of money at compound interest rate of 30% per annum for 2 years .It would fetch Rs. 500 more if interest is compounded half –yearly.
A) Rs.8000
B) Rs.8041.12
C) Rs.8145
D) Rs.8457.2
E) Rs.8333.33

View Answer
Option E
Solution:
P[1+(15/100)]^4 – P[1 +(30/100)]^2 = 500
=> P = 8333.33
At what rate of % per annum will Rs.2304 amount to Rs. 2500 in 2 years compounded annually.
A) 5.2%
B) 4.16%
C) 3.45%
D) 4.5%
E) 3.2%

View Answer
Option B
Solution:
Shortcut::
2304 == 2500
576 == 625
Take square roots
24 == 25
diff. = 1
= (1/24) * 100 = 4.16%
The ratio of the amount for 2 years under compound interest annually and for 1 year under simple interest is 5:4 when the rate of interest is same then find the rate of interest?
A) 20%
B) 25%
C) 60%
D) 30%
E) 40%

View Answer
Option B
Solution:
rate /100 = 5/4 -1
rate = 25%
Anu borrowed Rs.800 at rate of interest 10% . He repaid Rs.400 at the end of first year.What is the amount required to repay at the end of second year to discharge his loan which was calculated at compound interest?
A) Rs.650
B) Rs.528
C) Rs.490
D) Rs.780
E) Rs.472

View Answer
Option B
Solution:
Amount paid at the end of 1 year = 800[1 + 10/100] = 880
Amount left as principal for the second year = 880-400 = 480
Amount to be paid after 2^nd year = 480 [1 + 10/100] = Rs.528
Sahil has lent some money to Anita at 6% per annum and Sheetal at 8% per annum. At the end of the year he has gain the overall interest at 7% per annum.In what ratio has he lent the money to Anita and Sheetal?
A) 3:8
B) 1:2
C) 2:5
D) 1:1
E) 4:5

View Answer
Option D
Solution:
6……………..8
………7
1 : 1
What is the ratio of the simple interest earned by certain amount for 4 years and 8 years at the same rate of interest?
A) 3:2
B) 2:1
C) 1:2
D) 4:3
E) 3:5

View Answer
Option C
Solution:
ratio = 4PR / 8PR = 1 : 2

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anurag agarwal

July 27, 2017 at 3:20 pm

Dear sir
Please explain the logic of question 7
1. cActi
  
  July 27, 2017 at 4:49 pm
  
  P[1 +(r/100)]^2 / P[1 + (r/100)]^1 = 4/5
  1 + (r/100) = 4/5
  r/100 = 1/4
  r=25%
  1. Pooja?
    
    July 27, 2017 at 5:53 pm
    
    6th me 24 kse aya
    1. Oliver Queen
      
      July 27, 2017 at 6:40 pm
      
      i’m also thinking the same
      1. cActi
        
        July 27, 2017 at 8:35 pm
        
        2304………… 2500
        1156…………1250
        576…………625
        24…………..25
        diff.
        25-24=1
        Therefore,
        (1/24)*100= 25/6= 4.16%.
      2. Oliver Queen
        
        July 27, 2017 at 11:57 pm
        
        when we’re taking ratio to fir square kaise le lia,? ye logic samjh nahi hai, mtlab
        jab hm log ratio niklte to both side ko same value de divide karte h na ki square lenege
        576:625 ye value same digit se divide nhi hogi
      3. Shubhra
        
        July 28, 2017 at 11:54 am
        
        Yes
        
        But shortcut is being used here, we can do like this
        
        Shortcut::
        2304 == 2500
        576 == 625
        Take square roots
        24 == 25
        diff. = 1
        = (1/24) * 100 = 4.16%
    2. cActi
      
      July 27, 2017 at 8:35 pm
      
      2304………… 2500
      1156…………1250
      576…………625
      24…………..25
      diff.
      25-24=1
      Therefore,
      (1/24)*100= 25/6= 4.16%
      1. Pooja?
        
        July 27, 2017 at 9:39 pm
        
        Got it thanks
    3. vikas
      
      July 27, 2017 at 8:55 pm
      
      ..
      1. vikas
        
        July 27, 2017 at 8:57 pm
        
        2304………… 2500
        48 (root) 50 (root)
        2/48=4.16
  2. Oliver Queen
    
    July 27, 2017 at 6:09 pm
    
    1st mein 6472.22 kaise aa rha?
    pura solve kariye khud se
    1. cActi
      
      July 27, 2017 at 8:51 pm
      
      x(18/100)*2 – 6000*(14/100)*2 = 650
      0.36x – 1680 = 650
      0.36x= 2330
      x = 2330/0.36
      x= 6472.22
      1. Oliver Queen
        
        July 27, 2017 at 11:57 pm
        
        thanks, got it, galti kr rha tha main
  3. Pablo Escobar
    
    September 1, 2017 at 3:46 pm
    
    Isn’t it compounded??? But in question it’s si
    1. Shubhra
      
      September 2, 2017 at 1:47 am
      
      yes take SI
      SI and CI for 1st year are same na
      so u can take any, it wont affect answer
2. thinker
  
  July 27, 2017 at 5:21 pm
  
  Logic is simple first year simple and compound interest are equal.and second if rate is equal we earn money more than on the first years simple interest.
_/_

July 27, 2017 at 8:07 pm

ty
vikas

July 27, 2017 at 8:54 pm

9/10
Saheba

July 28, 2017 at 1:19 am

please explain no. 8.. my answer comes 616.
Amount paid at the end of 2 year = (800*10*2)/100 + 800 = 960
Amount left as principal for the second year = 560
Amount to be paid after 2nd year = (560*10)/100 +560 = Rs.616
1. ครђ
  
  July 28, 2017 at 3:57 am
  
  will count for 1 year = (800*10*1)/100+800 = 880
  1. Saheba
    
    July 28, 2017 at 4:37 pm
    
    why 1 year?? we are to find out Amount paid at the end of 2 year, right?
    1. Shubhra
      
      July 28, 2017 at 5:08 pm
      
      400 Rs is paid after a year
      
      so 1st we will find for 1 year which is 880 the
      
      880-400 = 480 is principal for 2nd year
jaga

July 28, 2017 at 3:22 am

thank u.
ครђ

July 28, 2017 at 3:53 am

Thanks Banya Ma’am :))
Jellyfish

July 28, 2017 at 9:31 am

10/10 ty az
~lonely~hanker~nitrous oxide~

August 24, 2017 at 5:08 pm

tq mam
kumkum ahuja

January 17, 2018 at 1:07 pm

ty az:)
final thoughts on amy anderssen videos

July 2, 2023 at 11:35 pm

I couldn’t refrain from commenting. Exceptionally well written!