Download Simple Interest and Compound Interest Practice questions pdf ebook(for bank,SSC,RBI,RRB,UPSC and other competitive exams)

Every competitive exam question paper will contain questions from simple interest and compound interest.You have learned Simple Interest and Compound in your high schools.Any one can solve simple interest and compound interest questions that are asked in competitive exams using two basic formulas of S.I and C.I. But for better time management during the examination you should be thorough with Simple Interest and Compound Interest shortcut formulas.Here we are sharing Simple Interest and Compound Interest questions pdf with answers fully solved  .This question set contains 15 questions from simple interest and compound interest section.We have solved questions using both conventional methods and shortcut methods. In IBPS,SBI,RRB,RBI bank PO and clerk exams, simple interest and compound interest section is very important. This problems on simple interest and compound interest for bank exams will surely help you crack your next bank test.You can read and download simple and compound interest problems with solutions pdf in ebook format given below.We have used compound interest shortcut tricks,simple interest shortcut tricks,difference between simple interest and compound interest shortcut formula etc.. for solving below practice questions.

• Simple Interest and Compound Interest Shortcuts and Tricks

Simple Interest Compound Interest Practice Questions PDF eBook(With shortcuts)

• Download Simple interest and compound interest practice questions  pdf ebook

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simon     23:27:00     3 comments:

Simple Interest and Compound interest shortcut formulas and trick for bank exams

Every bank exam contains simple interest and compound interest questions.Every candidate can solve these questions.But in bank exams, time management is an important factors.Shortcut formulas play an important role in time management.Here we are sharing important formulas and shortcuts for solving simple interest and compound interest faster.Hope this will save your few valuable minutes during next exam.

Simple Interest

Simple interest is given by the formula I= PRT /100

P=PRINCIPLE R=RATE OF INTEREST per annum T=TIME PERIOD

• If principle doubles in T years,then R=100/T
• If principle triples in T years ,then R=200/T
• if principle becomes  four times in T years,then R=300/T

Compound Interest

Compound interest is given by,

                                  

 Amount after T years ,

                                      

• If rate is R1,R2 & R3 for 1st,2nd and 3rd year respectively then amount is ,

                              

• If difference of S.I and C.I is given for 2 years

                             

Example:Difference between simple interest on certain sum of money for 2 years at 4% and compound interest for same period at same rate is 200.Find the  sum

Ans:Principle=difference*(100/2)^2=200*100/2*100/2=RS 500000.

• If difference of S.I and C.I is given for 3 years                                  

• If amount compounded half yearly R will be replaced by R/2 and T will be replaced by 2T

                                     

• If amount compounded quarterly R will be replaced by R/4 and T will be replaced by 4T

                                            

Eg :Find the compound interest of Rs.10,000 in 9 months at 4%per annum interest payable quarterly.

Rate=4/4=1%,Time period= 9 months=3 quarter years.

CI=10,000*((1+1/100)^3 -1)=303.01.

• If an amount A becomes B in T1 years ,then at T2 years                                        

Shortcut for finding compound interest 

In some cases evaluation of C.I using formula will be time consuming. Here is an alternate method for calculating compound interest.

Let Principle = P, Compound interest % =  x % per annum , Time period=T

If T=2 , 

Total interest percentage for the first year=x,

Total interest percentage for the second year=x + x% of x= x+ (x*x/100)

Then effective percentage of interest =2x + x*x/100

Then C.I=(2 x + x*x/100) % of P= P*[(2x + x*x/100)/100]

If T=3

Total interest percentage for the first year=x,

Total interest percentage for the second year=x + x% of x= x+ (x*x/100)

Total interest percentage for the third year= x + x % of ( x + x+ x*x/100) =x+ x*( x + x+ x*x/100)/100)

Then effective percentage of interest= x+ x+ (x*x/100) + x+ x*( x + x+ x*x/100)/100)= 3x+ (x*x/100) +x*( 2x + x*x/100)/100)

You may be finding  formulas lengthy, but you will find this method simpler after practicing some problems.Especially if T=2, then this method will be much faster than conventional method using the commonly used formula.

Now let us solve two problems using above method.

Example 1 : What is the compound interest paid on a sum of Rs.3000 for the period of 2 years at 10% per annum.

1. 630
2. 620
3. 610
4. 600

Solution= Interest % for 1st year= 10

                 Interest % for 2nd year= 10+ 10% of 10= 10+ 10 *10/100=11

                 Total % of interest= 10 + 11=21

                 Total interest = 21 % 3000= 3000 * (21/100)= 630

So, answer is option 1

Example 2:What is the compound interest paid on a sum of Rs.3000 for the period of 3 years at 10% per annum.

1. 900
2. 930
3. 990
4. 993

Solution= Interest % for 1st year= 10

                 Interest % for 2nd year= 10+ 10% of 10= 10+ 10 *10/100=11

                 Interest % for 3rd year= 10+ 10%(10+11)=10+ 2.1=12.1

                 Total % of interest= 10 + 11+12.1=33.1

                 Total interest = 33.1 % 3000= 3000 * (33.1/100)= 993

So, answer is option 4

Simple interest, compound interest practice questions

1.A man derives his income from an investment of Rs.2000 at a certain rate of interest and Rs.1600 at 2% higher. The whole interest in 3 years is Rs.960. Find the rate of interest.

Answer:8%

2.A man buys a house and pays Rs.8000 cash and Rs.9600 at 5 year credit at 4% per annum simple interest. Find the cash price of the house.

Answer: Rs.16000

3.The simple interest on a certain sum of money for 3 years at 4% is Rs.303.60. Find the compound interest on the same sum for the same period at the same rate.

Answer:315.90

4.If a certain sum given on simple intrest doubles in 20 years. In how many years will it be four times?

Answer:60 years

5.A sum of money placed at compound interest doubles itself in 4 years. In how many years will it amount to 8 times.

Answer:12 years

• Simple Interest Compound Interest Practice questions PDF(15 questions Fully solved with shortcuts)

               

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simon     13:16:00     4 comments: