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October 09, 2014

Simple Interest and Compound Interest Practice Problems for IBPS POs & Clerks

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Interest is the additional money paid for the usage of a certain amount. Keep in mind that interest problems can sometimes be solved without the application of interest or compound interest formulas at all. Always examine the answer choices for clues and look for opportunities to work backwards. 

Some Important Points to Note :

  • If the interest is calculated on same amount of money it is called the Simple Interest. Simple Interest will be the same for all the years. 
  • Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods is called compound interest. 
  • Interest can be thought of as the rental cost of money. The math requires a solid grasp of percentages and exponents. Like Rates and Work questions, this concept can appear intimidating if you don't know the required formulas, but are actually simple to solve. 
Now let's have a look at some practice problems. Try to solve these on your own and check with the answers given below. We will update detailed solutions with explanations soon. 
  1. What would be the Simple Interest obtained on an amount of Rs. 12690 at the rate of 6 p.c.p.a after 3 years ?
    1. Rs. 2423.40
    2. Rs. 2233.40
    3. Rs. 2284.20
    4. Rs. 2525
    5. None of these 
  2. What would be the amount on Rs. 8250 for 4 years at 15% per annum Simple Interst ?
    1. Rs. 13200
    2. Rs. 12300
    3. Rs. 10450
    4. Rs. 11200
    5. None of these 
  3. What is the Compound Interest accrued on an amount of Rs. 9600, at the rate of 6% p.a. at the end of 2 years ?
    1. Rs. 10786.56
    2. Rs. 1186.56
    3. Rs. 1286.36
    4. Rs. 1175.40
    5. None of these 
  4. Bharat lent Rs. 1500 to Sudeep for 4 years and Rs. 4500 to Raju for 2 years. If he receives Rs. 750 as Simple Interest altogether, find the rate of Interest ?
    1. 4%
    2. 2%
    3. 5%
    4. 3%
    5. None of these 
  5. What is the interest accrued on Rs. 120000 for one and half year at 4% p.a. compounded half yearly ?
    1. Rs. 716.523
    2. Rs. 7356.562
    3. Rs. 698.362
    4. Rs. 734.496
    5. None of these 
  6. What will be the amount on Rs. 25000 in 2 years at Compound Interest, if  the rates for the successive years be 4% and 5% per year ?
    1. Rs. 26800
    2. Rs. 27300
    3. Rs. 27275
    4. Rs. 27675
    5. None of these 
  7. What is the difference between Simple and Compound Interest for two years on Rs. 24000 at 7% rate ?
    1. Rs. 117.50
    2. Rs. 116.56
    3. Rs. 127.36
    4. Rs. 116.40
    5. None of these 
  8. A sum was put at Simple Interest at a certain rate for 2 years. Had it been put at 3% higher rate, it would have fetched Rs. 72 more. What is that sum ?
    1. Rs. 1200
    2. Rs. 1350
    3. Rs. 1275
    4. Rs. 1675
    5. None of these 
  9. A sum of money will become Rs. 8060 in 4 years at 6% per annum Simple Interest. Find the sum ?
    1. Rs. 6800
    2. Rs. 8600
    3. Rs. 6500
    4. Rs. 6750
    5. None of these 
  10. What sum will become Rs. 6690 in 3 years and Rs. 10035 in six years on Compound Interest ?
    1. Rs. 4600
    2. Rs. 4640
    3. Rs. 4700
    4. Rs. 4460
    5. None of these 
  11. Out of a certain sum of money, 1/3rd is invested at 3%, 1/6th is invested at 6% and the rest at 8%. If the Simple Interest for 2 years from all these investments is Rs. 1020, what is the original sum ?
    1. Rs. 9500
    2. Rs. 7000
    3. Rs. 8500
    4. Rs. 8000
    5. None of these 
  12. On what sum does the difference between Simple and Compound Interest for 3 years at 5% rate will be R.s 244 ?
    1. Rs. 35500
    2. Rs. 32000
    3. Rs. 32500
    4. Rs. 38000
    5. None of these 
  13. A certain sum of money invested at Compound Interest doubles in 3 years. In how many years will it becomes 6 times itself ?
    1. 6 years
    2. 9 years
    3. 5 years
    4. 12 years
    5. None of these 
  14. A sum of money will become Rs. 9100 in 5 years and 10660 in 8 years at a certain rate of Simple Interest. Find the rate of interest 
    1. 4%
    2. 3%
    3. 5%
    4.  8%
    5. None of these 
  15. The population of a town increased by 4% every year. If its population in 2011 was 59488, what was the population in 2009 ?
    1. 56000
    2. 54000
    3. 55000
    4. 50000
    5. None of these 
  16. Akhil borrowed Rs. 5000 from Kamal at Simple Interest. If Kamal got Rs. 400 more than his capital  as interest after 6 years, what is the rate of interest per annum ?
    1. 12%
    2. 15%
    3. 9%
    4. 6%
    5. 18%
  17. The rate of Simple Interest on a certain amount of money is 6% p.a. for the first tow years, 9% p.a. for next five years and 13% p.a. for the period beyond seven years. If the total interest on a sum at the end of ten years is Rs. 9120, what is the sum ?
    1. Rs. 9500
    2. Rs. 10500
    3. Rs. 12500
    4. Rs. 11750
    5. None of these 
  18. A sum of Rs. 1400 becomes Rs. 16562 in three years at certain rate of Simple Interest. What will be the amount if the rate of interest is increased by 3% ?
    1. Rs. 378
    2. Rs. 1748
    3. Rs. 1586
    4. Rs. 1778
    5. None of these
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7 comments:

  1. thank u !!!!!

    ReplyDelete
  2. can a candidate apply both posts at a time in New India assurance company..Officers and Assistants..?

    ReplyDelete
  3. Can any boby reply to my question? pls its urgent..

    ReplyDelete
  4. this the best site for those who are preparing for bank exams. thanks a lot Gr8 team....

    ReplyDelete

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