Simple Interest and Compound Interest Questions For Bank Exam : Set-1

1

Simple Interest and Compound Interest Questions

Simple Interest and Compound Interest Questions Bank Exams 2018. Welcome to the www.letsstudytogether.co online Quant section. If you are preparing for SBI Clerk, and SBI PO exams 2017-18, you will come across a section on Quantitative Aptitude Section. Here we are providing you with Quant quiz on “Simple Interest and Compound Interest Questions ” based on the latest pattern for your daily practice.

This “Simple Interest and Compound Interest Questions” is also important for other banking exams such as SBI PO, IBPS Clerk, SBI Clerk, IBPS RRB Officer, IBPS RRB Office Assistant, IBPS SO, SBI SO and other competitive exams.

Simple Interest and Compound Interest Questions For IBPS Exam: Set-1


1. The compound interest on a certain sum for two years at 20% per annum is Rs 770. If the same sum is lent for 3 years at simple interest for 1% per month, find the interest obtained on the sum.

A.Rs 525

B. Rs 550

C. Rs 660

D. Rs 630

E. None of these

Show Correct Answers

 Option – D

let the sum be P.

CI = P(1 + 20/100)2  – P = 770

=> 1.44P – P = 770

=> 0.44P = 770

=> P = 1750

Now rate of interest = 1% pm = 12% p.a.

SI =  1750 × 12 × 3 / 1000 = 630

2. A sum of money was lent at 10% per annum compounded annually for 2 years. If the interest was compounded half-yearly, he would have received Rs. 440.50 more find the sum.

A.Rs 40000

B. Rs 64000

C. Rs 75000

D. Rs 80000

E. None of these

Show Correct Answers

  

Option- D

Let the sum be x.

When compounded annually,

Amount = x(1+10/100)

2 =121x/100

When compounded half-yearly,

Amount = x(1+5/100)

4 =194481x/160000

Now,

194481x/160000 -121x/100 =440.5

=> 881x/160000 = 440.5

= x= 80000

3. A certain money at certain rate was put for 5 years at simple interest. If it had been put for 3% higher rate, it would have fetched Rs 96 more. Find the sum in Rs?

A. Rs 460

B. Rs 640

C. Rs 840

D. Rs 760

E. 680

Show Correct Answers

  Option – B

(SI)1 – (SI)2 = (PT)/100 x (R1 – R2)

96 = (P x 5/100) x (3)

So, P = 640

4. Mohit invested some amount in a bank at a simple interest and got Rs 2365 after 3 years. Had he withdrawn the same money from the bank after 5 years then he would have got Rs 2655. Find out rate of interest offered by the bank and the money invested by Mohit respectively?

A. 7% ; 2020

B. 7.5% ; 1930

C. 8.5% ; 1890

D. 8% ; 1830

E. None of these

Show Correct Answers

  Option –B

Let the sum be P and annual interest be I.

From the 1

st condition, P + 3I = 2365 … (1)

According to the 2

nd condition, P + 5I = 2655 … (2)

On solving the equations we get, P = Rs 1930 and I = Rs 145

 R = 145 × 100/1930 =  7.5% ( Approx)

5. The simple interest accrued on an amount of Rs. 17,000 at the end of four years is Rs. 6,800. What would be the compound interest accrued on the same amount at the same rate in the same period?

A. Rs 7889.7

B. Rs 8324

C. Rs 6990.5

D. Rs 7129.3

E. 7558.6

Show Correct Answers

  Option- A

R =  ( SI × 100/ ( P × T) = 6800× 100 / (17000 × 4)  = 10%

CI = P ( 1 + R /100)T – P

     = 17000{ ( 1.1)4 – 1 }

    = 17000 × 1.464 – 1) = 7889.7

6. A sum of money invested at simple interest amounts to Rs 5000 in three years and Rs 5450 in five years? What is the principal amount and approximate rate of interest?

A. Rs 4325, 5.2%

B. Rs 4500, 6%

C. Rs 4135, 5.8%

D. Rs 4250, 5.5%

E. CND

Show Correct Answers

 Option – A

As we know that amount of simple interest that we get in each year remains same.

So let’s assume Principal Amount invested is Rs P and interest of one year is Rs A.

Hence according to the 1

st condition, P + 3A = 5000 .. (1)

Similarly, P + 5A = 5450 .. (2)

From both the equations we will get,

P = Rs 4325 and A = Rs 225

So, R = 225/4325 × 100 = 5.2%

7. The compound interest on a certain sum for 2 years at 20% per annum is Rs. 880. The simple interest on the same sum for double the time at half the rate percent per annum is:-

A. Rs 800

B. Rs 1000

C. Rs 1200

D. Rs 1600

E. None of these

Show Correct Answers

 Option – A

Let Principal = P

Compound interest at 20% per annum for 2 years = P(1+20/100)2– P = 44% of P = 880

P = 2000

Now SI for 4 years  @ 10 % =  40% of 2000 = 800

8. Sam invested Rs. 20,000 @ 15% per annum for one year. If the interest is compounded half yearly, then what will be the amount received by Sam at the end of the year?

A. Rs 23105.5

B. Rs 23112.5

C. Rs 23117.5

D. Rs 23150

E. None of these

Show Correct Answers

 Option – B

P = Rs 20000; R = 15% p.a. = 7.5 % per half-year;

T = 1 year = 2 half-years

If an amount P is compounded at interest rate of r for T years then the total amount which we Will get = P (1 + r/100)T

Amount = Rs.[20000 X (1 +7.5/100) X (1 +7.5/100)]

=  23112.5

9. Vinod borrowed Rs 10000 from a bank at simple interest. After 4 years he paid Rs 6000 to the bank and again after 2 years he paid Rs 8000 to settle the loan. What is the interest rate at which Vinod borrowed the sum?

A. 7 1/2%

B. 9 4/5%

C. 8 1/3%

D. 8 3/8%

E. None of these

Show Correct Answers

  Option – C

Let’s assume interest rate = R%

Total interest paid by Vinod = Rs (6000 + 8000 – 10000)

= Rs 4000

Now total interest paid = Interest on Rs 10000 for 4 years + Interest on Rs 4000 (10000 – 6000) for 2 years

=> 4000 = (10000 X 4 X R)/100+(4000 X 2 X R)/100

=>4000 = 400R + 80R

480R = 4000 

R = 8  1/3 %

10. Ramesh borrowed Rs 30000 from a bank at a rate of 12% per annum for two years at simple interest and lends the same money to Mahesh at the rate of 12% for two years but he charged compound interest. What is the overall gain by Ramesh?

A.Rs 510

B. Rs 472

C. Rs 432

D. Rs 396

E. Rs. 414

Show Correct Answers

  Option- C

As we know that when an amount P is invested for two years at rate of R% per annum then the difference between SI and Ci = PR2/100

Overall gain = 3000 × 0.12)2  = 432


Complete SBI Clerk Study Material 2018 – Click Here

SBI Clerk Prelims Free Online Mock Test

Railway RRB Group D 2018 Study Material


New Pattern Puzzle & Seating Arrangement PDF

200+ New Pattern Puzzle & Seating Arrangement Questions | Download Free PDF


 

Quantitative Aptitude book For Banking and Insurance Exams