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IBPS Clerk Difference SI vs CI

Study Material — 14 PYQs (2019–2019) · Concept Notes · Shortcuts

IBPS Clerk Difference SI vs CI is a frequently tested subtopic — 14 previous year questions from 2019–2019 papers are included below with concept notes, key rules and shortcut tricks.

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2019–2019
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Previous Year Questions

IBPS Clerk Difference SI vs CI — Past Exam Questions

14 questions from actual IBPS Clerk papers · all shown free · click option to reveal solution

Exam Q 12019Previous Year Pattern

The difference between compound interest and simple interest on a principal of ₹8,000 at 5% per annum for 3 years is:

Exam Q 22019Previous Year Pattern

A sum of ₹4,000 is invested at 12% per annum for 2 years. How much more interest is earned under compound interest compared to simple interest?

Exam Q 32019Previous Year Pattern

The difference between compound interest and simple interest on a certain principal at 6% per annum for 2 years is ₹36. What is the principal?

Exam Q 42019Previous Year Pattern

A principal of ₹10,000 is invested at 8% per annum. The difference between CI and SI for 2 years is ₹64. Is this statement correct?

Exam Q 52019Previous Year Pattern

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?

Exam Q 62019Previous Year Pattern

A principal amount becomes ₹11,664 after 2 years at 8% per annum compound interest. What would be the simple interest on the same principal for the same period and rate?

Exam Q 72019Previous Year Pattern

A sum of ₹6,000 is invested at 15% per annum. The difference between compound interest for 2 years and simple interest for 2 years is what percentage of the principal?

Exam Q 82019Previous Year Pattern

The difference between compound interest and simple interest on a sum for 2 years at 10% per annum is ₹100. What is the principal?

Exam Q 92019Previous Year Pattern

A sum of ₹8,000 is invested at 12% per annum. What is the difference between the compound interest and simple interest earned over 2 years?

Exam Q 102019Previous Year Pattern

The difference between compound interest and simple interest on a principal for 2 years is ₹80. If the rate of interest is 8% per annum, and the principal is invested for 4 years at the same rate under compound interest, what will be the compound interest earned?

Exam Q 112019Previous Year Pattern

A sum of money becomes ₹9,680 in 2 years at 10% per annum under compound interest. What would be the difference between compound interest and simple interest on the same sum for the same period and rate?

Exam Q 122019Previous Year Pattern

The difference between compound interest and simple interest on a certain sum for 3 years at 5% per annum is ₹61.25. What is the principal?

Exam Q 132019Previous Year Pattern

The difference between CI and SI on a sum for 2 years at a certain rate per annum is ₹100. If the rate of interest is 10% per annum, what is the principal? (Assume the difference is calculated on the same principal for both methods.)

Exam Q 142019Previous Year Pattern

A sum becomes ₹1,331 in 3 years at 10% per annum under compound interest. If the same sum were invested at simple interest for the same period and rate, what would be the difference between the two interests earned?

Concept Notes

Difference SI vs CI— Rules & Concept

1.Core Concept

Read this first — the foundation of the topic

The difference between Simple Interest (SI) and Compound Interest (CI) is one of the most frequently tested concepts in SSC CGL. This difference exists because compound interest includes interest on previously earned interest, while simple interest does not. Core Concept:

Simple Interest is calculated only on the principal amount throughout the investment period. Compound Interest is calculated on the principal plus accumulated interest from previous periods. The difference between CI and SI represents the 'extra earning' due to compounding effect.

2.Formula Block

Memorise — at least one formula appears in every paper
For 2 years: CI - SI = P × R² / (100)²
For 3 years: CI - SI = P × R² × (300 + R) / (100)³
Where P = Principal, R = Rate per annum, T = Time

3.Exam Patterns

What examiners ask — read before attempting PYQs
SSC CGL typically asks three types of questions

(1) Direct calculation of difference given P, R, T (2) Finding principal when difference and rate are given (3) Finding rate when principal and difference are given. Most questions involve 2-3 years timeframe as longer periods make calculations complex

Powerful Shortcut for 2 Years

Difference = (SI for 1 year)² / Principal This works because: If SI for 1 year = PRT/100, then difference = (PRT/100)² / P = PR²T²/(100²P) = PR²/100² (for T=2)

4.Worked Example

Solve this step-by-step before moving on
1
Step 1

Calculate SI for 2 years SI = (P × R × T) / 100 = (8000 × 15 × 2) / 100 = Rs. 2400

2
Step 2

Calculate CI for 2 years Amount = P(1 + R/100)ᵀ = 8000(1 + 15/100)² = 8000 × (1.15)² = 8000 × 1.3225 = Rs. 10,580 CI = Amount - Principal = 10,580 - 8000 = Rs. 2580

3
Step 3

Find difference CI - SI = 2580 - 2400 = Rs. 180 Alternative (Using Formula): CI - SI = P × R² / (100)² = 8000 × (15)² / (100)² = 8000 × 225 / 10000 = Rs. 180

5.Shortcuts

Use these to save 30–60 seconds per question

for 3 Years: For 3 years, the difference equals: 3 × (2-year difference) + (2-year difference × R/100)

6.Exam Traps

Common mistakes students make — avoid these

Students often confuse the formula for different time periods. Remember: the 2-year formula is simplest and most tested. For 3 years, don't memorize the complex formula - use the relationship with 2-year difference instead.

Key Points to Remember

  • Difference exists only when time period is more than 1 year
  • For 2 years: CI - SI = P × R² / (100)²
  • For 3 years: CI - SI = P × R² × (300 + R) / (100)³
  • Difference represents interest earned on interest portions
  • 2-year difference problems are most common in SSC CGL
  • If SI for 1 year is known, 2-year difference = (SI)² / Principal
  • Compound Interest is always greater than Simple Interest for same P, R, T
  • The difference increases exponentially with higher rates and longer periods

Exam-Specific Tips

  • For 2 years at 10% rate, difference is always 1% of principal
  • For 2 years at 20% rate, difference is always 4% of principal
  • For Rs. 100 at 15% for 2 years, difference is exactly Rs. 2.25
  • The ratio CI:SI for 2 years at 10% is always 21:20
  • For 3 years, minimum additional factor in formula is 300 (when R=0)
  • Difference for 2 years = P×R²/10000 (direct calculation)
  • For equal principal and rate, 3-year difference is roughly 3 times 2-year difference
  • At 25% rate for 2 years, difference equals 6.25% of principal

60-Second Revision — Difference SI vs CI

  • Formula: 2 years difference = P × R² / 10000
  • Remember: Difference exists only when T > 1 year
  • Trick: 2-year difference = (Annual SI)² / Principal
  • Pattern: Most SSC questions use 2-3 year timeframes
  • Trap: Don't use 3-year formula for 2-year problems
  • Quick check: At 10% for 2 years, difference = 1% of principal
  • Method: Calculate both CI and SI separately when formulas confuse
←Compound InterestHalf-Yearly / Quarterly CI→
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