1

COMPOUND INTEREST
1.

2.

3.

4.

5.

NATIONALISED BANKS
& IBPS PO/MT/SO
Suresh invested a sum of Rs. 15000 at 9
per cent per annum simple interest and Rs.
12000 at 8 per cent per annum compound
interest for a period of 2 years. What
amount of interest did Suresh earn in 2
years ?
(1) Rs. 4096.60
(2) Rs. 4696.80
(3) Rs. 4896.60
(4) Rs. 4698.60
(5) None of these
(Syndicate Bank PO Exam. 10.10.2004)
Satish invests Rs. 35,500 in a scheme
which earns him simple interest at the rate
of 15 p.c.p.a. for two years. At the end of
two years he reinvests the principal amount
plus interest earned in another scheme
which earns him compound Interest at the
rate of 20 p.c.p.a. What will be the total
interest earned by Satish over the principal
amount at the end of 5 years ?
(1) Rs. 30,956.80
(2) Rs. 35,017.20
(3) Rs. 43,597.80
(4) Rs. 44,247.20
(5) None of these
(Union Bank of India PO
Exam. 27.11.2005
The simple interest accrued on an amount
of Rs. 14,800 at the end of three years is
Rs. 6,216. What would be the compound
interest accrued on the same amount at the
same rate in the same period ?
(1) Rs. 6986.1142
(2) Rs. 7042.2014
(3) Rs. 7126.8512
(4) Rs. 8321.4166
(5) None of these
(Corporation Bank PO
Exam. 29.07.2006)
The simple interest accrued on an amount
of Rs. 40,000 at the end of three years is
Rs. 12,000. What would be the compound
interest accrued on the same amount at the
same rate in the same period ?
(1) Rs. 18,765
(2) Rs. 15,350
(3) Rs. 21,555
(4) Rs. 13,240
(5) None of these
(Andhra Bank PO Exam. 14.09.2008)
The compound interest accrued on an
amount of Rs. 22,000 at the end of two
years is Rs. 5,596.8. What would be the
simple interest accrued on the same amount
at the same rate in the same period ?

6.

7.

8.

9.

10.

(1) Rs.5,420
(2) Rs.5,360
(3) Rs.5,280
(4) Rs.5,140
(5) None of these
(Oriental Bank of Commerce
PO Exam. 21.12.2008)
The compound interest accrued on an
amount of Rs. 25,500 at the end of three
years is Rs. 8,440.5. What would be the
simple interest accrued on the same amount
at the same rate in the same period ?
(1) Rs. 4,650
(2) Rs. 5,650
(3) Rs. 6,650
(4) Rs. 7,650
(5) None of these
(Canara Bank PO Exam. 15.03.2009)
What would be the compound interest
obtained on an amount of Rs. 20,000 at the
rate of 15 p.c.p.a. after 4 years ?
(1) Rs. 14,980.125
(2) Rs. 19,680.125
(3) Rs. 16,780.125
(4) Rs. 18,980.125
(5) None of these
(Indian Overseas Bank PO
Exam. 05.04.2009)
Mr. Duggal invested Rs. 20,000 with rate
of interest at 20 p.c.p.a. The interest was
compounded half yearly for first year and
in the next year it was compounded yearly.
What will be the total interest earned at the
end of two years ?
(1) Rs. 8,800
(2) Rs. 9,040
(3) Rs. 8,040
(4) Rs. 9,800
(5) None of these
(United Bank of India PO
Exam. 21.06.2009)
What will be the compoun d inte rest
accrued on an amount. Rs. 10,000 at the
rate of 20 p.c.p.a. in two years if the interest
is compounded half yearly ?
(1) Rs. 4,400
(2) Rs. 4,600
(3) Rs. 4,641
(4) Rs. 4,680
(5) None of these
(Andhra Bank PO Exam. 05.07.2009
What would be the compound interest
accrued on an amount of Rs. 7,400 at the
rate of 13.5 p.c.p.a. at the end of two years
? (rounded off to two digits after decimal)
(1) Rs. 2,136.87
(2) Rs. 2,306.81
(3) Rs. 2,032.18
(4) Rs. 2,132.87
(5) None of these
(Indian Bank PO Exam. 17.10.2010)

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

2
11.

12.

13.

14.

15.

16.

What would be the compound interest

accrued on an amout of Rs. 45,400 at the
end of two years at the rate of 15 p.c.p.a ?
(1) Rs. 16411.5
(2) Rs. 14461.5
(3) Rs. 16461.5
(4) Rs. 14641.5
(5) None of these
(Bank Of India Banking Officer
Exam. 24.01.2010)
Sonika invested an amount of Rs. 5,800 for
2 years. At what rate of compound interest
will she get an amount of Rs. 594.5 at the
end of two years ?
(1) 5 p.c.p.a.
(2) 4 p.c.p.a.
(3) 6 p.c.p.a.
(4) 8 p.c.p.a.
(5) None of these
(Corporation Bank PO
Exam. 09.05.2010)
A man gets a simple interest of Rs. 1,000
on a certain principal at the rate of 5 p.c.p.a.
in 4 years. What compound interest will
the man get on twice the principal in two
years at the same rate ?
(1) Rs. 1,050
(2) Rs. 1,005
(3) Rs. 11,025
(4) Rs. 10,125
(5) None of these
(Punjab & Sind Bank Exam.
16.05.2010)
What will be the approximate difference
in the simple and compound interest
accrued on an amount of Rs 2600 at the rate
of 15 p.c. p.a. at the end of three years ?
(1) Rs 167
(2) Rs 194
(3) Rs 202
(4) Rs 172
(5) Rs 184
(United Bank Of India PO
Exam. 14.11.2010)
Pamela invested an amount of Rs 35,000
for two years at the rate of 5 p.c.p.a. What
amount of compound interest would she
receive at the end of two years ?
(1) Rs 3587.50
(2) Rs 3500
(3) Rs 3580.50
(4) Rs 3565.50
(5) None of these
(PNB Management Trainee
Exam. 28.11.2010)
The simple interest accrued on a sum of
certain principal is Rs 2,000 in five years
at the rate of 4 p.c.p.a. What would be the
compound interest accrued on same
principal at same rate in two years ?
(1) Rs 716
(2) Rs 724
(3) Rs 824
(4) Rs 816
(5) None of these
(Corporation Bank PO
Exam. 16.01.2011)

17.

18.

19.

20.

21.

22.

The difference between the amount of

compound interest and simple interest
accured on an amount of Rs 26000 at the
end of 3 years is Rs 2994.134. What is the
rate of interest p.c.p.a. ?
(1) 22
(2) 17
(3) 19
(4) Cannot be determined
(5) None of these
(Punjab & Sind Bank PO
Exam. 23.01.2011)
The simple interest accrued on a sum of
certain principal is Rs 6500 in eight years
at the rate of 13 per cent per year. What
would be the compound interest accrued
on that principal at the rate of 8 per cent
per year in 2 years?
(1) Rs 1040
(2) Rs 1020
(3) Rs 1060
(4) Rs 1200
(5) None of these
(UCO Bank PO Exam. 30.01.2011)
The simple interest accrued on a sum of
certain principal is Rs 7,200 in six years at
the rate of 12 p.c.p.a. What would be the
compound interest accrued on that principal
at the rate of 5 p.c.p.a. in 2 years ?
(1) Rs 1,020
(2) Rs 1,055
(3) Rs 1,050
(4) Rs 1,025
(5) None of these
(Bank Of Baxoda PO Exam. 13.03.2011)
The simple interest accrued on an amount
of Rs 22,500 at the end of four years is Rs
10,800. What would be the compound
interest accrued on the same amount at the
same rate at the end of two years ?
(1) Rs 14,908
(2) Rs 5,724
(3) Rs 26,234
(4) Rs 8,568
(5) None of these
(IBPS Bank PO/MT CWE 18.09.2011)
What is the difference between the simple
and compound interest on Rs 7300 at the
rate of 6 p.c.p.a. in 2 years ?
(1) Rs 29.37
(2) Rs 26.28
(3) Rs 31.41
(4) Rs 23.22
(5) Rs 21.34
(IBPS Bank PO/MT CWE 17.06.2012)
The compound interest earned on a sum
in 3 years at 15% per annum compounded
annually is Rs 6500.52. What is the sum ?
(1) Rs 12480
(2) Rs 10500
(3) Rs 14800
(4) Rs 13620
(5) None of these
(IBPS Specialist Officer
CWE 17.03.2013)

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

3
23.

What would be the compound interest

obtained on an amount of Rs. 7,790 at the
rate of 10 p.c.p.a. after two years ?
(1) Rs. 1532.60
(2) Rs. 1495.90
(3) Rs. 1653.50
(4) Rs. 1635.90
(5) None of these
(IBPS RRBs Office Assistant
CWE Exam. 09.09.2012)

(2)
(3)
(4)
(5)

6.

SBI PO EXAMS
1.

2.

3.

4.

5.

The difference between the simple interest

on a certain sum at the rate of 10% per
annum for 2 years and compound interest
which is compounded every 6 months is
Rs. 124.05. What is the principal sum ?
(1) Rs. 10,000
(2) Rs. 6,000
(3) Rs. 12,000
(4) Rs. 8,000
(5) None of these
(SBI Banks PO Exam. 20.08.2000)
Sudharshan invested Rs. 15,000 at interest
@ 10 p.c. p.a. for one year. If the interest
is compounded every six months what
amount will Sudharshan get at the end of
the year ?
(1) Rs. 16,537.50
(2) Rs. 16, 500
(3) Rs. 16, 525.50
(4) Rs. 18,150
(5) None of these
(SBI Associate Banks
PO Exam. 21.07.2002)
What will be the compound interest on a
sum of Rs. 25,000 after three years at the
rate of 12 per cent p.a. ?
(1) Rs. 10123.20
(2) Rs. 9000.30
(3) Rs. 10483.20
(4) Rs. 9720
(5) None of these
(SBI Banks PO Exam. 18.05.2003)
Mr. Rao invests a sum of Rs. 41,250 at the
rate of 6 p.c.p.a. What approximate amount
of compound interest will he obtain at the
end of 3 years ?
(1) Rs.8,100
(2) Rs.7,425
(3) Rs.8,210
(4) Rs.7,879
(5) Rs.7,295
(SBI PO Preliminary (Tire-I)
Exam. 27.04.2008)
The simple interest accrued on an amount
of Rs. 20,000 at the end of three years is
Rs. 7,200. What would be the compound
interest accrued on the same amount at the
same rate in the same period ?
(1) Rs. 8342.36

7.

Rs. 8098.56
Rs. 8246.16
Rs. 8112.86
None of these
(SBI PO Preliminary (Tire-I)
Exam. 27.07.2008)
The compound interest accrued on an
amount at the end of three years at 15 p.c.p.a.
is Rs. 6500.52. What is the amount ?
(1) Rs. 12480
(2) Rs. 10500
(3) Rs. 14800
(4) Rs. 13620
(5) None of these
(SBI PO Preliminary (Tire-I)
Exam. 27.07.2008)
The compound interest earned by Suresh
on a certain amount at the end of two years
at the rate of 8 p.c.p.a was Rs. 1,414.4. What
was the total amount that Suresh got back
at the end of two years in the form of
principal plus interest earned ?
(1) Rs.9,414.4
(2) Rs.9.914.4
(3) Rs.9,014.4
(4) Rs.8,914.4
(5) None of these
(SBI & Rural Business PO
Exam. 18.04.2010)

RBI GRADEB OFFICER EXAMS

1.

The compound interest accrued on an

amount at the end of two years at the rate of
12 p.c.p.a is Rs 2,862. What is the amount
?
(1) Rs 11,250
(2) Rs 12,200
(3) Rs 13,500
(4) Rs 10,000
(5) None of these
(RBI Grade-B Officer Exam.06.02.2011)

INSURANCE EXAMS
1.

Rajan invested an amount of Rs. 8,000/in a fixed deposit scheme for 2 years at
compound interest rate 5 percent p.a. How
much amount will Rajan get on maturity of
the fixed deposit ?
(1) Rs. 8,620/(2) Rs. 8,840/(3) Rs. 8,800/(4) Rs. 8,600/(5) None of these
(LIC Assistant Administrative
Officer (AAO) Exam. 24.04.2005)
2.
Sudharshan invested Rs. 15,000 at interest
@ 10 p.c. p.a. for one year. If the interest is
co mpo unded every si x mon ths wh at
amount will Sudharshan get at the end of
the year ?
(1) Rs. 16,537.50
(2) Rs. 16,500
(3) Rs. 16,525.50
(4) Rs. 18,150
(5) None of these
LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

4
3.

4.

5.

6.

(LIC Assistant Administrative

Officer (AAO) Exam. 2006)
A sum of money becomes Rs. 13,380 after
3 years and Rs. 20,070 after 6 years on compound interest. The sum (in Rupees) is :
(1) 8800
(2) 8890
(3) 8920
(4) 9040
(United India Insurance Co.
(AAO) Exam. 11.03.2007)
The compound interest (in Rupees) on Rs.
1
5,600 for 1 years at 10% per annum,
2
compounded annually, is
(1) 882.70
(2) 873.50
(3) 868
(4) 840
(LIC Assistant Administrative
Officer (AAO) Exam, 07.06.2009)
The simple interest accrued on an amount
of Rs. 27,500 at the end of three years is
Rs. 10,230. What would be the approximate
compound interest accrued on the same
amount at the same rate in the same period ?
(1) Rs. 11,550
(2) Rs. 12,620
(3) Rs. 10,950
(4) Rs. 11,900
(5) Rs. 13,500
(New India Assurance AO
Exam. 25.10.2009)
A sum of money lent out at compound
interest increases in value by 50% in 5
years. A person wants to lend three different
sums x, y and z for 10, 15 and 20 years
respectively at the above rate in such a way
that he gets back equal sums at the end of
their respective periods. The ratio x : y : z
is
(1) 6 : 9 : 4
(2) 9 : 4 : 6
(3) 9 : 6 : 4
(4) 6 : 4 : 9
(New India Assurance AO
Exam. 25.10.2009)

7.

8.

9.

10.

The simple interest accrued on a sum of

certain principal is Rs 6,400 in four years
at the rate of 8 p.c.p.a. What would be the
compound interest accrued on that principal
at the rate of 2 p.c.p.a. in 2 years ?
(1) Rs 800
(2) Rs 808
(3) Rs 704
(4) Rs 700
(5) None of these
(United India Insurance AO
Exam. 27.03.2011)
A sum of Rs. 91,000 is borrowed at 20%
per annum compounded annually. If the
amount is to be paid in three equal
instalments,the annual instalment will be
(1) Rs. 43,200
(2) Rs. 42,800
(3) Rs. 42,500
(4) Rs. 42,300
(United India Insurance AAO
Exam. 03.06.2012)
The compound interest accrued on an
amount of Rs. 22,000 at the end of two
years is Rs 5,596.8. What would be the
simple interest accrued on the same amount
at the same rate in the same period ?
(1) Rs.5,420
(2) Rs.5,360
(3) Rs.5,280
(4) Rs.5,140
(5) None of these
(United India Insurance
AO Exam. 26.05.2013
The difference between the compound
interest and simple interest for the amount
Rs. 5,000 in 2 years is Rs. 32. The rate of
interest is
(1) 5%
(2) 8%
(3) 10%
(4) 12%
(NICL (GIC) AO (Finance)
Exam. 15.12.2013)

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

5
SHORT ANSWERS
1.
3.
5.
7.
9.
11.
13.
15.
17.
19.
21.
23.

35500 15 2
= Rs. 10650
100
Principal for another investment
= 35500 + 10650 = Rs. 46150

NATIONALISED BANKS
& IBPS PO/MT/SO
2. (4)
4. (4)
6. (4)
8. (2)
10. (4)
12. (1)
14. (5)
16. (4)
18. (1)
20. (2)
22. (1)

(2)
(3)
(3)
(1)
(3)
(4)
(5)
(1)
(3)
(4)
(2)
(4)

20
1

C.I.
=
Rs.
46150

100

6 3
= Rs. 46150 5 1

216 125
= Rs. 46150

125

1.
3.
5.
7.

2. (1)
4. (4)
6. (1)

(4)
(1)
(2)
(2)

3.

r =

RBI GRADEB OFFICER EXAMS

1.

(1)

1.
3.
5.
7.
9.

(5)
(3)
(1)
(2)
(3)

2. (1)
4. (3)
6. (3)
8. (1)
10. (2)

14
1

= Rs. 14800 100 1

3
= Rs. 14800 1.14 1
= Rs. 14800 (1.481544- 1)
= Rs. 14800 0.481544
= Rs. 7126.8512

EXPLANATIONS
NATIONALISED BANKS
& IBPS PO/MT/SO
(2) SI =

15000 9 2
= Rs. 2700
100

4.

8
1

CI = 12000 100 1

SI 100
Principal Time

12000 100
= 10%
40000 3

Rate Time
CI = Principal 1 100 1

27

= 12000 25 1

729 625
= 12000

625
= 12000

2.

(4) Rate =
=

104
= Rs. 1996.8
625
Total interest earned
= Rs. (2700 + 1996.8) = Rs. 4696.8
(4) Simple interest

6216 100
= 14
14800 3

r
1

C.I = P 100 1

INSURANCE EXAMS

1.

46150 91
125
= Rs. 33597.20
Total interest earned
= Rs (10650 + 33597.20) = Rs. 44247.20
(3) Let the rate p.c. p.a. be r.

= Rs.

SBI PO EXAMS

5.

10
= 40000 1 100 1

3
= 40000 [(1.1) - 1]
= 40000 (1.331 - 1)
= 40000 0.331 = Rs. 13240
(3) Let the rate of interest be R% per
annum.

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

6
T

R
1

CI = P 100 1

1
R = 100 10 = 10%

R
1

5596.8
=
22000

100

S.I =

5596.8
R
= 1
1
22000 100

R
5596.8

1
= 1
100
22000

7.

R
22000 5596.8
27596.8

=
1
=
100
22000
22000

R
=
100

12544 112
=
10000 100

279841 160000
= 20000

160000

= 20000

22000 2 12
=
= Rs 5280
100
(4) Amount
= Rs. (25500 + 8440.5)
= Rs. 33940.5

33940.5
R

= 1

25500
100

339405
=
255000

100

1331
R
= 1

1000 100
3

R
11

= 1

10
100

1+

8.

R
11
=
100 10

119841
= Rs 14980.125
160000

Rate
(2) Amount = Principal 1

100

Time

20
10

= 20000 1
1 100

100
(Rate of interest for the first year
= 10% , Time = 2 half years)

33940.5 = 25500 1

100

R
(1) CI = P 1 100 1

23 4
= 20000 20 1

Principal Time Rate

SI =
100

A = P 1

100

25500 3 10
= Rs. 7650
100

3
1

= 20000 20 1

R
112
112 110
12
=
-1=
=

100 100
100
100
R = 12%

6.

Principal Time Rate

100

15
1

= 20000 100 1

R
275968
12544

=
1
=
100
220000
10000

1+

R 11
1
= -1=
100 10
10

9.

11 11 6

= Rs. 20000 = Rs. 29040

10
10 5

C.I. = Rs. (29040 - 20000) = Rs. 9040

(3) Interest is compounded half yearly.
R = 20% p.a. = 10% /half year
T = 2 years = 4 half years
T

R
1

C.I = P 100 1

10
1

= 10000 100 1

11 4
= 10000 10 1

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

7
Rate Time
CI = P 1 100 1

121 121
1
1
= 10000
100 100

= 10000

10.

221 21

= Rs.4641
100 100

5
= 10000 1 100 1

R
1

(4) C.I. = P 100 1

21 2
= 10000 20 1

13.5 2
= 7400 1 100 1

= 10000

2
= 7400 1.135 1
= 7400 0.288225 = Rs. 2132.87

11.

14.

R
1

(4) C.I. = P 100 1

= 2600

2
= 45400 1.15 1
= 45400 0.3225 = Rs. 14641.5

12.

63945
=
58000

100

441
R
= 1

400 100
2

15.

2600 15 3
= Rs. 1170
100
Difference = Rs. (1354.275 - 1170)
= Rs. 184.275 Rs 184
(1) Compound interest
T

R
1

= P 100 1

5
1

= 35000
100

41
= Rs.3587.5
400
(4) Principal

= 35000
16.

R
21
=
1+
100 20

1
100
20
= 5% per annum.

R
1

C.I = P 100 1

R=

13.

P R T
100

R
21
= 1

20 100

4167
= Rs. 1354.275
8000

Simple interest =

5800 + 594.5 = 5800 1

100

R
1

(5) A = P 100 1

15
1

= 2600
100

15
1

= 45400 100 1

(1) Amount = P 1

100

41
= Rs. 1025
400

(5) Principal =

SI 100
Time Rate

1000 100
= Rs. 5000
45
Case II
Principal = Rs. 10000

SI 100
2000 100
=
= Rs 10000
Time Rate
5 4

4
= 10000 1 100 1

26 2
= 10000 25 1

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

8
676
1
= 10000
625
=

21 2
= 10000 20 1

10000 51
= Rs 816
625

441
1
= 10000
400

17.

r 300 r
(3) CI - SI for 3 years = P

100 100

10000 41
= Rs. 1025
400

r 300 r
2994.134 = 2600

100 100

20.

2994.134
300 r r 2
=
26000
1000000

(1) Principal =
=

28 2
= 22500 25 1

6500 100
= Rs. 6250
8 13

784 625
= 22500

625

R
1

CI = P 100 1

8
1

= 6250 100 1

729 625
= 6250

625
=

10800 100
= 12% per annum
22500 4

12
= 22500 1 100 1

SI 100
Time Rate

27 2
= 6250 25 1

22500 159
= Rs. 5724
625

PR2

21.

(2) Difference =

22.

7300 36
= Rs. 26.28
10000
(1) Let the principal be Rs. x, then
3

S.I 100
Time Rate

23 23 23
650052

- x =
20 20 20
100

12167x - 8000x =

7200 100
= Rs 10000
6 12

650052 8000
100

650052 8000
= 156 80
100 4167
= Rs. 12480

x=

R
1

C.I = P 100 1

5
1

= 10000 100 1

15
650052

x 1
-x=
100
100

6250 104
= Rs 1040
625

(4) Principal =

100

x
19.

S.I 100
Principal Time

R
1

CI = P 100 1

2994134000
= 300r2 + r3

26000
115159 = 300r2 + r3
Option (3) r = 19% satisfies the equation.

18.

(2) Rate =

23.

R
1

(4) C.I. = P 100 1

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

9
No. of periods = 2
Amount

10
1

= 7790 100 1

121
1
= 7790
100

7790 21
= Rs. 1635.90
100

3.

SBI PO EXAMS
1.

12
1

CI. = 25000 100 1

(4) Let the principal sum be Rs. P

SI =

PRT
100

C.I. P 1
1

100

nt

R
1

CI = P 100 1

=
=
=
=

R = 10% , T = 2 years, n = 2
because CI is compounded half
SI =

P 10 2 P
=
100
5

4.

22

10
1

CI = P 100 2 1

=
=

23877
= Rs 7879.41
125000
Rs. 7879

= 41250

34481
P
16000
34481
P
P
160000
5

5.

2481
P
160000

12
1

= 20000 100 1

P=

10
= 5%
2

7200 100
= 12% Per annum
20000 3

R
1

C.I. = P 100 1

2481
16000 P = 124.05

2.

S.I.100
(2) Rate= Principal Time
=

34481 32000
P
160000

124.05 160000
2481
= Rs. 8000
(1) Interest is compounded half yearly.
Hence rate of interest

R
1

(4) C.I. = P 100 1

148877 125000
= 41250

125000

194481
1
CI = P
160000

CI - SI =

25000 {(1.12)3 - 1}
25000 (1.404928- 1)
25000 0.404928
Rs. 10123.2

6
1

= 41250 100 1

21 4
CI = P 20 1

CI =

= 15000 1

100
21 21
= 15000

20 20
= Rs. 16537.50
(1)

6.

3
= 20000 1.12 1
= 20000 (1.404928 - 1)
= Rs. 8098.56
(1) Let the principal be Rs. P.
According to the question,

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

10
T

R
1

C.I. = P 100 1

105
= 8000

100

15
1

6500.52
=
P

100

6500.52 = P [1.520875 - 1]

= 8000

P=

7.

2.

105 105

= Rs.8820
100 100
(1) Interest is compounded half yearly.
Hence rate of interest
10
= 5%
2
No. of periods = 2
Amount

6500.52
= Rs.12480
0.520875

R
1

(2) CI = P 100 1

= 15000 1

100

8
1

1414.4 = P 100 1

1414.4 = P 0.1664

21 21

= Rs. 16537.50
20 20
(3) Let the sum be Rs. x. Then,

= 15000
3.

1414.4
= Rs. 8500
P =
0.1664
Amount = Rs. (8500 + 1414.4)
= Rs. 9914.40

x 1
=13380
100
and,

...(i)

x 1
= 20070 ...(ii)
100
Dividing equation (ii) by (i),

RBI GRADE-B OFFICER EXAMS

1.

(1) If the principal be Rs. P, then

T

R
1

C.I = P 100 1

R
20070 3

=
1
=
13380 2
100
From equation (i),

12
1

2862 = P 100 1

28 2
2862 = P 25 1

784 625
2862 = P 625

2862 = P
P =

159
625

2862 625
= Rs. 11250
159

3
= 13380
2

2
= 8920
3
Hence, the sum is Rs. 8920.
(3) Amount

x = 13380

4.

Rate
= Principal 1

100

Time

1
1

2
5600 1 10
= Rs.
100

INSURANCE EXAMS
1.

10

10

2
5600 1

1
= Rs.
100
100

(5) P = 8000
t = 2 years
r = 5%
r

A = P 1

100

= 8000 1

100

11 21

= Rs. 5600 = Rs. 6468

10 20

Compound interest
= Rs. (6468 - 5600) = Rs. 868

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

11
5.

(1) Rate =
=

6.

SI 100
Principal Time

5 25 125
91000 = x 6 36 216

10230 100
= 12.4%
27500 3

180 150 125

91000 = x
216

R
C.I = P 1
1
100

91000 =

12.4 3
= 27500 1 100 1

91000 216
= Rs. 43200
455
(3) Let the rate of interest be R% per
annum.
x =

9.

27500 (1.42- 1)
= 27500 0.42
= Rs. 11550
(3) Tricky approach
According to the question,
2

R
1

CI = P 100 1

R
1

5596.8 = 22000 100 1

3
3
3
x = y = z = k let
2
2
2
2

x 455
216

1
1
100

5596.8
=

22000

2
2
x = k, y = k
3
3

R
5596.8

1
= 1 + 22000
100

2
and z = k
3

R
22000 5596.8

1
=
22000
100

2
2
2
x : y : z = k : k : k
3
3
3

R
27596.8

1
= 22000
100

2 2
=1:
: =9:6:4
3 3

7.

S.I100
Rate Time
6400 100
=
8 4
= Rs. 20000

1+

(2) P =

R 112
112 110
12
=
-1=
=
100 100
100
100
R = 12%

SI =

2
1

= 20000 100 1

r
1
100

x
r

100

Principal Time Rate

100

22000 2 12
= Rs. 5280
100
(2) Difference

=
10.

= 20000 0.0404 = Rs. 808

(1) If each instalment be Rs. x,
then.
91000 =
x

12544 112
=
10000 100

Rate Time
C.I = P 1 100 1

8.

R
=
100

x
r

100

Rate 2
Principal 10000

r2
32 = 5000 10000

r2 = 32 2 = 64
r = 64 = 8% per annum

5 5 2 5 3
91000 = x 6 6 6

LEARN
MATHSFROM S.K. RAJU (9811549822, 9811649822)

12

MODEL EXERCISES
1.

2.

3.

4.

5.

6.

7.

A sum of money becomes eight times in 3

years, if the rate is compounded annually.
In how much time the same amount at the
same compound interest rate will become
sixteen times ?
(1) 6 years
(2) 4 years
(3) 8 years
(4) 5 years
(5) None of these
If the difference between the simple and the
compound interests on same principal
amount at 20% for 3 years is Rs 48, then
the principal amount must be
(1) Rs 650
(2) Rs 600
(3) Rs 375
(4) Rs 400
(5) None of these
The difference between the simple interest
and the compound interest compounded
annually at the rate of 12% per annum on
Rs 5000 for two years will be
(1) Rs 17.50
(2) Rs 36
(3) Rs 45
(4) Rs 72
(5) None of these
Sanjay borrowed a certain sum from Anil
at a certain rate of simple interest for 2 yr.
He lent this sum to Ram at the same rate
of interest compounded annually for the
same period. At the end of two years, he
received Rs 4200 as compound interest but
paid Rs 4000 only as simple interest, find
the rate of interest.
(1) 15%
(2) 20%
(3) 35%
(4) 10%
(5) None of these
Under the Rural Housing Scheme, the Delhi
Development Authority (DDA) allotted a
house to Kamal Raj for Rs 126100. This
payment is to be made in three equal
annu al instalments. If the mone y is
reckoned at 5% per annum compound
interest, then how much is to be paid by
Kamal Raj in each instalment ?
(1) Rs 45205
(2) Rs 47405
(3) Rs 46305
(4) Rs 48505
(5) None of these
Ram takes a loan Rs 10000 and pays back
Rs 13310 after 3 years. The compound
in te re st rate per ann um w il l be
approximately.
(1) 8%
(2) 9%
(3) 10%
(4) 11%
(5) None of these
The difference between the compound
interest and the simple interest on a certain

8.

9.

10.

11.

12.

13.

sum of money for 2 years at 15% per annum

is Rs 45. Find the sum.
(1) Rs 7000
(2) Rs 2750
(3) Rs 2000
(4) Rs 2250
(5) None of these
Two friends A and B jointly lent out Rs
81600 at 4% per ann um co mpou nd
interest. After 2 years, A gets the same
amount as B gets after 3 years. The
investment made by B was
(1) Rs 40000
(2) Rs 30000
(3) Rs 45000
(4) Rs 38000
(5) None of these
A sum o f mone y is accumulatin g at
compound interest at a certain rate of
interest. If simple interest instead of
compound were reckoned, the interest for
the first two years would be diminished by
Rs 20 and that for the first three years by
Rs 61. Find the sum.
(1) Rs 7000
(2) Rs 8000
(3) Rs 7500
(4) Rs 6500
(5) None of these
Rs 5887 is divided between Shyam and
Ram, such that Shyams share at the end
of 9 years is equal to Rams share at the
end of 11 years, compound annually at the
rate of 5% . The share of Shyam is
(1) Rs 2088
(2) Rs 2000
(3) Rs 3087
(4) Rs 2200
(5) None of these
Amit borrowed a certain sum of money for
2 years at 8% per annum on simple interest
and immediately lent it to Ravi but at
compound interest and gained by Rs 16.
What amount did Amit borrow ?
(1) Rs 1600
(2) Rs 2500
(3) Rs 24000
(4) Rs 1800
(5) None of these
A sum of Rs 30600 is divided between Anjali
and Arun, who are respectively 18 and 19
years old, in such a way that if their shares
are invested at 4% per annum compounded
annually, they shall receive the same
amount on reaching 21 years of age. What
is the share of Anjali ?
(1) Rs 16000
(2) Rs 15000
(3) Rs 15600
(4) Rs 14600
(5) None of these
A man borrows Rs 4000 from a bank at
1
7 % compound interest. At the end of
2
every year, he pays Rs 1500 as part

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

13

14.

repayment of loan and interest. How much

does he still owe to the bank after three
such instalments ?
(1) Rs 123.25
(2) Rs 125
(3) Rs 400
(4) Rs 469.18
(5) None of these
Sanju puts equal amounts of money one
at 10% per annum compound interest
payable half yearly and the second at a
certain per cent per annum compound
interest payable yearly. If he gets equal
amounts after 3 years, what is the value of
the second per cent ?
1
(1) 10 %
4

15.

(2) 10%

1
1
(3) 9 %
(4) 8 %
2
4
(5) None of these
Ravi Sh ankar take s mo ney from the
employees cooperative society at lower rate
of interest and saves in a scheme, which
gives him a compound interest of 20% ,
compounded annually. Finally the least
number of complete years after which his
sum will be more than double.

16.

17.

(1) 4 years
(2) 2 years
(3) 6 years
(4) 8 years
(5) None of these
Equal sums of money are deposited in two
different banks by M/s Enterprise, one at
compound interest, compounded annually
and the other at simple interest, both at
5% per annum. If after two years, the
difference in the amounts comes to Rs 200,
what are the amounts deposited with each
bank ?
(1) Rs 72000
(2) Rs 64000
(3) Rs 80000
(4) Rs 8400
(5) None of these
A sum of money lent at compound interest
for 2 years at 20% per annum would fetch
Rs 482 more if the interest was payable half
yearly than if it was payable annually. The
sum is
(1) Rs 10,000
(2) Rs 20,000
(3) Rs 40,000
(4) Rs 50,000
(5) None of these

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

14
SHORTANSWERS
1.
3.
5.
7.
9.
11.
13.
15.
17.

2. (3)
4. (4)
6. (3)
8. (1)
10. (3)
12. (2)
14. (1)
16. (3)

(2)
(4)
(3)
(3)
(2)
(2)
(1)
(2)
(2)

Principal =

3.

(2) Let the sum of money be Rs x.

r

Then. 8x = x 1

100
r

8 = 1

100

4.

33
= Rs 72
25 25
(4) Let the money borrowed be Rs x and
rate be r% .
and Time = 2 yr

xr 2
100
rx
=
200000

4000 =

and x 1
= x + 4200
100

1
= 23
100

2 xr
xr 2
+
= 4200 + x
10000 100
20r + 4000 = 4200
r = 10%
(3) Let the amount of each instalment be
Rs x.
Then,

x +

r
=2
100
Again, let the sum will become 16 times in
n years
Then,

1+

5.

126100 =

16x = x 1

100

16 = 2n 24 = 2n
n = 4 years
(3) Let principal amount be Rs 100.

Then, S.I. =

r
100

364
64
- 60 =
5
5

= Rs 100
If difference is if 48,

100

20 400
1 21 441

20
21

126100 = x

20 441 420 400

441

21

126100 = x

20
1261

21
441

364
6
= 100 -100 =
5
5

64
, Principal
5

1 100

x
2

126100 = x

20

and C.I. = 100 1

- 100
100

If differences is Rs

20 20 2 20 3
126100 = x 21 21 21

100 20 3
= Rs 60
100

C.I. - S.I. =

= 5000

23 = 1

100

2.

r
(4) CI - SI for 2 years = P

100
12
= 5000

100

EXPLANATIONS
1.

100 5
48 = Rs 375
64

126100 21 441
= Rs 46305
20 1261
(3) Let the rate of compound interest be r.

x=

6.

Then, 10000 1
=13310
100

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

15
3

r
1331

1
= 1000
100
3

11
1
=
100
10

5
5

Then, x 1
= (5887 - x) 1

100
100
3

11.

r
1
=
100 10
r = 10%

7.

r
(3) CI - SI for 2 years = P

100
15
45 = P

100

x
= 1.1025
5887 x
x = 5887 1.1025 - 1.1025x
2.1025x = 5887 1.1025
x = Rs 3087
(2) Let Amit borrow Rs x.
According to the question,

r
11
=
100
10

1+

11

r
CI - SI for 2 years = P

100

8
16 = x

100

16 10000
= Rs 2500
64
(2) Let the share of Anjali be x.
Then, the share of Arun is
(30600 - x).

x=

45 100 100
= Rs 2000
15 15
Let the investment made by
B=x
Then, investment made by
A = (81600 - x)

P=

8.

4
4

(81600 - x) 1 100 = x 1 100

81600 - x = 1.04x

9.

12.

4
4

x 1
= (30600 - x) 1

100
100
3

81600
= Rs. 40000
x=
2.04
(2) Let the principal be P and rate of interest
be r% . Then, principal (when difference
between C.I. and SI is for 2 years) is given
by

P=

20 100

13.

300 r

14.

61106
20 10 4
=
2
r 300 r
r2

10.

7.5

3 years =1510 1
- 1500 = Rs 123.25
100

(1) Let the value of second rate of interest

be x% and equal amounts be P each.
5
x

P 1
= P 1

100
100

r = 305 - 300 = 5%
20 10
= Rs 8000
25
(3) Let Shyams share = x
From Eq. (i), P =

30600 100
= Rs 15000
204
(1) Amount remaining after

7.5

2 years = 2800 1
- 1500 = Rs 1510
100

.......(ii)

From eqs. (i) and (ii),

204
x = 30600
100

7.5

1 year = 4000 1
- 1500 = Rs 2800
100

61 106
2

104
= 30600 - x
100

x=

.......(i)
r2
and difference between CI and SI is for 3
years is given by
P=

x
5

1
= 1 100

100

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)

16
105 105 100 x
=
100 100
100
110.25 = 100 + x
= 10.25%

441P
441P 400P
41P
-P=
=
400
400
400
In IInd bank, we get

SI =

25
1
= 10 %
100
4
(2) Let the sum of money be P.

x =10

15.

20

P 1 100 2P

17.

P R T
P 5 2
P
=
=
100
100
10

41P
P
100 - 100 = 200
P = Rs 80000
(2) Let the sum be Rs. x.
4

16.

6
2
5
(1.2) T 2
Hence, least value of T is 2 yr.
(3) Let P be the amount deposit in two
different banks.
In 1st bank,

11
6
x - x = 482
10
5
x (1.4641 - 1.44) = 482
0.024lx = 482

CI = P 1
-P
100

10
20

x 1
- x 1
= 482
100
100

x=

482
= 20000
0.0241

21
= P - P
20

LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)