Question 1

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 2

Rajesh deposits ₹5,000 in a bank at a simple interest rate of 8% per annum. How much interest will he earn after 3 years?

Accepted Answer

Step 1: Use the Simple Interest formula: SI = (P × R × T) / 100. Step 2: Substitute values: SI = (5000 × 8 × 3) / 100 = 120000 / 100 = ₹1,200. Therefore, the interest earned is ₹1,200.

Question 3

A sum of ₹20,000 is invested at 20% per annum compound interest, compounded quarterly. What will be the interest earned in the first quarter?

Accepted Answer

Step 1: For quarterly compounding, rate per quarter = 20% ÷ 4 = 5% per quarter. Step 2: Interest for first quarter = (20000 × 5)/100 = ₹1,000. Step 3: Note: In the first quarter, compound interest equals simple interest because there is no prior compounding. Amount after Q1 = 20000 + 1000 = ₹21,000.

Question 4

A sum becomes ₹4,840 in 2 years at 10% per annum compound interest. What is the principal?

Accepted Answer

Step 1: Use A = P(1 + r/100)^n. Step 2: 4840 = P(1.10)^2 = P × 1.21. Step 3: P = 4840/1.21 = ₹4,000. Therefore, the principal is ₹4,000.

Question 5

₹6,000 is invested at 15% per annum compound interest. What is the difference between the compound interest and simple interest for 2 years?

Accepted Answer

Step 1: Compound Interest: A = 6000(1.15)^2 = 6000 × 1.3225 = ₹7,935. CI = 7,935 - 6,000 = ₹1,935. Step 2: Simple Interest: SI = (6000 × 15 × 2)/100 = ₹1,800. Step 3: Difference = CI - SI = 1,935 - 1,800 = ₹135.

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

SBI Clerk Simple & Compound Interest — Exam-Pattern Questions

Study Next — Related Topics

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

SBI Clerk Simple & Compound Interest — Exam-Pattern Questions

Study Next — Related Topics

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