## Simple & Compound Interest Solved Questions For IBPS, SBI and Other Bank Exams - Page 2

**Question 1**

If a sum of Rs.8000 lended for 20% per annum at compound interest then the sum of the amount will be Rs.13824 in:

a) 2 years b) 1year c) 3years d) 4years

**Answer :** c)3years

Solution :

Let Principal = P, Rate = R% per annum, Time = n years.

When interest is compounded Annually total amount can be calculated by using the formula,

Total Amount = P(1 + R/100)^{n}

Given that, P = Rs.8000, R = 20% per annum

We have to find the time period during which the amount will be Rs.13824

i.e., Rs.13824 = 8000 x (1 + 20/100)^n

13824/8000 = (120/100)^{n}

(24/20)^3 = (12/10)^{n}

(12/10)^3 = (12/10)^{n}

Therefore, n = 3.

Hence the required time period is 3 years.

**Question 2**

Find the compound interest on a principal amount of Rs.5000 after 2 years, if the rate of interest for the 1st year is 2% and for the 2nd year is 4%.

a) Rs.304 b) Rs.314 c) Rs.324 d) Rs.334

**Answer :** a)Rs.304

Solution :

When Rates are different for different years, say R1%, R2%, R3% for 1st, 2nd and 3rd year respectively.

Then, Amount (= Principal + Compound interest) = P(1 + R1/100)(1 + R2/100)(1 + R3/100).

Here R1 = 2% R2 = 4% and p = Rs.5000, we have to find CI (compound interest).

CI = 5000(1 + 2/100)(1 + 4/100) - 5000

= 5000 x (102/100)(104/100) - 5000

= 5000 x (51/50) x (52/50) - 5000

= 5000 x (51 x 52/2500) - 5000

= 5000 x (2652 / 2500) - 5000

= 5304 - 5000 = 304

Hence the required compound interest is Rs.304.

**Question 3**

What sum(principal) will be amount to Rs.34536.39 at compound interest in 3 years, the rate of interest for 1st, 2nd and 3rd year being 5%, 6% and 7% respectively?

a) Rs.25576 b) Rs.29000 c) Rs.28012 d) Rs.24000

**Answer :** b)Rs.29000

Solution :

Let Rs.P be the required sum.

34536.39 = p(1 + 5/100)(1 + 6/100)(1 + 7/100)

= p (105/100) x (106/100) x (107/100)

p = 34536.39 x 100 x 100 x 100 / 105 x 106 x 107

p = Rs.29000

Hence the required amount is Rs.29000

**Question 4**

What will be the amount if sum of Rs.10,00,000 is invested at compound interest for 3 years with rate of interest 11%, 12% and 13% respectively?

a) Rs.14,04,816 b) Rs.12,14,816 c) Rs.11,35,816 d) Rs.16,00,816

**Answer :** a)Rs.14,04,816

Solution:

Here, P = Rs.10,00,000 R1 = 11 R2 = 12 R3 = 13.

Therefore, Amount after 3 years

= p(1 + R1/100)(1 + R2/100)(1 + R3/100)

= 10,00,000 x(1 + 11/100)x(1 + 12/100)x(1 + 13/100)

= 10,00,000 x (111/100) x (112/100) x (113/100)

= 111 x 112 x 113

= 1404816

Hence the total amount after 3 years is Rs.14,04,816.