Question 1

The difference between compound interest and simple interest on ₹4,000 for 2 years at 5% per annum is:

Accepted Answer

Step 1: Simple Interest = (4000 × 5 × 2)/100 = ₹400. Step 2: Amount at CI = 4000(1 + 5/100)^2 = 4000(1.05)^2 = 4000 × 1.1025 = ₹4,410. Step 3: Compound Interest = 4410 - 4000 = ₹410. Step 4: Difference = CI - SI = 410 - 400 = ₹10.

Question 2

A sum of ₹5,000 is invested at 10% per annum for 2 years. What is the difference between the compound interest and simple interest earned?

Accepted Answer

Step 1: Calculate Simple Interest using SI = (P × R × T) / 100 = (5000 × 10 × 2) / 100 = ₹1,000. Step 2: Calculate Compound Interest using A = P(1 + R/100)^T = 5000(1.1)^2 = 5000 × 1.21 = ₹6,050, so CI = 6050 - 5000 = ₹1,050. Step 3: Difference = CI - SI = 1050 - 1000 = ₹50.

Question 3

At what rate per annum will ₹8,000 amount to ₹9,680 in 2 years at compound interest?

Accepted Answer

Step 1: Use A = P(1 + r/100)^n, so 9680 = 8000(1 + r/100)^2. Step 2: (1 + r/100)^2 = 9680/8000 = 1.21. Step 3: 1 + r/100 = √1.21 = 1.1. Step 4: r/100 = 0.1, so r = 10% per annum.

Question 4

A sum of money doubles itself in 5 years at compound interest. In how many years will it become 8 times at the same rate?

Accepted Answer

Step 1: If principal P becomes 2P in 5 years, then (1 + r/100)^5 = 2. Step 2: We need to find n such that (1 + r/100)^n = 8. Step 3: Note that 8 = 2^3, so (1 + r/100)^n = [(1 + r/100)^5]^3 = (1 + r/100)^15. Step 4: Therefore, n = 15 years.

Question 5

What is the compound interest on ₹6,000 at 5% per annum for 2 years?

Accepted Answer

Step 1: Calculate amount using A = P(1 + r/100)^n = 6000(1 + 5/100)^2 = 6000(1.05)^2 = 6000 × 1.1025 = ₹6,615. Step 2: Compound Interest = A - P = 6615 - 6000 = ₹615.

IBPS Clerk Simple & Compound Interest Questions
with Answers, Trap Analysis & Shortcuts

IBPS Clerk Simple & Compound Interest — Exam-Pattern Questions

Study Next — Related Topics

IBPS Clerk Simple & Compound Interest Questionswith Answers, Trap Analysis & Shortcuts

IBPS Clerk Simple & Compound Interest — Exam-Pattern Questions

Study Next — Related Topics

IBPS Clerk Simple & Compound Interest Questions
with Answers, Trap Analysis & Shortcuts