1

COMPOUND INTEREST
NATIONALISED BANKS (1) Rs.5,420 (2) Rs.5,360
& IBPS PO/MT/SO (3) Rs.5,280 (4) Rs.5,140
1. Suresh invested a sum of Rs. 15000 at 9 (5) None of these
per cent per annum simple interest and Rs. (Oriental Bank of Commerce
12000 at 8 per cent per annum compound PO Exam. 21.12.2008)
interest for a period of 2 years. What 6. The compound interest accrued on an
amount of interest did Suresh earn in 2 amount of Rs. 25,500 at the end of three
years ? years is Rs. 8,440.5. What would be the
(1) Rs. 4096.60 (2) Rs. 4696.80 simple interest accrued on the same amount
(3) Rs. 4896.60 (4) Rs. 4698.60 at the same rate in the same period ?
(5) None of these (1) Rs. 4,650 (2) Rs. 5,650
(Syndicate Bank PO Exam. 10.10.2004) (3) Rs. 6,650 (4) Rs. 7,650
2. Satish invests Rs. 35,500 in a scheme (5) None of these
which earns him simple interest at the rate (Canara Bank PO Exam. 15.03.2009)
of 15 p.c.p.a. for two years. At the end of 7. What would be the compound interest
two years he reinvests the principal amount obtained on an amount of Rs. 20,000 at the
plus interest earned in another scheme rate of 15 p.c.p.a. after 4 years ?
which earns him compound Interest at the (1) Rs. 14,980.125
rate of 20 p.c.p.a. What will be the total (2) Rs. 19,680.125
interest earned by Satish over the principal (3) Rs. 16,780.125
amount at the end of 5 years ? (4) Rs. 18,980.125
(1) Rs. 30,956.80 (5) None of these
(2) Rs. 35,017.20 (Indian Overseas Bank PO
(3) Rs. 43,597.80 Exam. 05.04.2009)
(4) Rs. 44,247.20 8. Mr. Duggal invested Rs. 20,000 with rate
(5) None of these of interest at 20 p.c.p.a. The interest was
(Union Bank of India PO compounded half yearly for first year and
Exam. 27.11.2005 in the next year it was compounded yearly.
3. The simple interest accrued on an amount What will be the total interest earned at the
of Rs. 14,800 at the end of three years is end of two years ?
Rs. 6,216. What would be the compound (1) Rs. 8,800 (2) Rs. 9,040
interest accrued on the same amount at the (3) Rs. 8,040 (4) Rs. 9,800
same rate in the same period ? (5) None of these
(1) Rs. 6986.1142 (United Bank of India PO
(2) Rs. 7042.2014 Exam. 21.06.2009)
(3) Rs. 7126.8512 9. What will be the compoun d inte rest
(4) Rs. 8321.4166 accrued on an amount. Rs. 10,000 at the
(5) None of these rate of 20 p.c.p.a. in two years if the interest
(Corporation Bank PO is compounded half yearly ?
Exam. 29.07.2006) (1) Rs. 4,400 (2) Rs. 4,600
4. The simple interest accrued on an amount (3) Rs. 4,641 (4) Rs. 4,680
of Rs. 40,000 at the end of three years is (5) None of these
Rs. 12,000. What would be the compound (Andhra Bank PO Exam. 05.07.2009
interest accrued on the same amount at the 10. What would be the compound interest
same rate in the same period ? accrued on an amount of Rs. 7,400 at the
(1) Rs. 18,765 (2) Rs. 15,350 rate of 13.5 p.c.p.a. at the end of two years
(3) Rs. 21,555 (4) Rs. 13,240 ? (rounded off to two digits after decimal)
(5) None of these (1) Rs. 2,136.87
(Andhra Bank PO Exam. 14.09.2008) (2) Rs. 2,306.81
5. The compound interest accrued on an (3) Rs. 2,032.18
amount of Rs. 22,000 at the end of two (4) Rs. 2,132.87
years is Rs. 5,596.8. What would be the (5) None of these
simple interest accrued on the same amount (Indian Bank PO Exam. 17.10.2010)
at the same rate in the same period ?
LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)
 2
11. What would be the compound interest 17. The difference between the amount of
accrued on an amout of Rs. 45,400 at the compound interest and simple interest
end of two years at the rate of 15 p.c.p.a ? accured on an amount of Rs 26000 at the
(1) Rs. 16411.5 (2) Rs. 14461.5 end of 3 years is Rs 2994.134. What is the
(3) Rs. 16461.5 (4) Rs. 14641.5 rate of interest p.c.p.a. ?
(5) None of these (1) 22
(Bank Of India Banking Officer (2) 17
Exam. 24.01.2010) (3) 19
12. Sonika invested an amount of Rs. 5,800 for (4) Cannot be determined
2 years. At what rate of compound interest (5) None of these
will she get an amount of Rs. 594.5 at the (Punjab & Sind Bank PO
end of two years ? Exam. 23.01.2011)
(1) 5 p.c.p.a. (2) 4 p.c.p.a. 18. The simple interest accrued on a sum of
(3) 6 p.c.p.a. (4) 8 p.c.p.a. certain principal is Rs 6500 in eight years
(5) None of these at the rate of 13 per cent per year. What
(Corporation Bank PO would be the compound interest accrued
Exam. 09.05.2010) on that principal at the rate of 8 per cent
13. A man gets a simple interest of Rs. 1,000 per year in 2 years?
on a certain principal at the rate of 5 p.c.p.a. (1) Rs 1040 (2) Rs 1020
in 4 years. What compound interest will (3) Rs 1060 (4) Rs 1200
the man get on twice the principal in two (5) None of these
years at the same rate ? (UCO Bank PO Exam. 30.01.2011)
(1) Rs. 1,050 (2) Rs. 1,005 19. The simple interest accrued on a sum of
(3) Rs. 11,025 (4) Rs. 10,125 certain principal is Rs 7,200 in six years at
(5) None of these the rate of 12 p.c.p.a. What would be the
(Punjab & Sind Bank Exam. compound interest accrued on that principal
16.05.2010) at the rate of 5 p.c.p.a. in 2 years ?
14. What will be the approximate difference (1) Rs 1,020 (2) Rs 1,055
in the simple and compound interest (3) Rs 1,050 (4) Rs 1,025
accrued on an amount of Rs 2600 at the rate (5) None of these
of 15 p.c. p.a. at the end of three years ? (Bank Of Baxoda PO Exam. 13.03.2011)
(1) Rs 167 (2) Rs 194 20. The simple interest accrued on an amount
(3) Rs 202 (4) Rs 172 of Rs 22,500 at the end of four years is Rs
(5) Rs 184 10,800. What would be the compound
(United Bank Of India PO interest accrued on the same amount at the
Exam. 14.11.2010) same rate at the end of two years ?
15. Pamela invested an amount of Rs 35,000 (1) Rs 14,908 (2) Rs 5,724
for two years at the rate of 5 p.c.p.a. What (3) Rs 26,234 (4) Rs 8,568
amount of compound interest would she (5) None of these
receive at the end of two years ? (IBPS Bank PO/MT CWE 18.09.2011)
(1) Rs 3587.50 (2) Rs 3500 21. What is the difference between the simple
(3) Rs 3580.50 (4) Rs 3565.50 and compound interest on Rs 7300 at the
(5) None of these rate of 6 p.c.p.a. in 2 years ?
(PNB Management Trainee (1) Rs 29.37 (2) Rs 26.28
Exam. 28.11.2010) (3) Rs 31.41 (4) Rs 23.22
16. The simple interest accrued on a sum of (5) Rs 21.34
certain principal is Rs 2,000 in five years (IBPS Bank PO/MT CWE 17.06.2012)
at the rate of 4 p.c.p.a. What would be the 22. The compound interest earned on a sum
compound interest accrued on same in 3 years at 15% per annum compounded
principal at same rate in two years ? annually is Rs 6500.52. What is the sum ?
(1) Rs 716 (2) Rs 724 (1) Rs 12480 (2) Rs 10500
(3) Rs 824 (4) Rs 816 (3) Rs 14800 (4) Rs 13620
(5) None of these (5) None of these
(Corporation Bank PO (IBPS Specialist Officer
Exam. 16.01.2011) CWE 17.03.2013)

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

 3
23. What would be the compound interest (2) Rs. 8098.56
obtained on an amount of Rs. 7,790 at the (3) Rs. 8246.16
rate of 10 p.c.p.a. after two years ? (4) Rs. 8112.86
(1) Rs. 1532.60 (2) Rs. 1495.90 (5) None of these
(3) Rs. 1653.50 (4) Rs. 1635.90 (SBI PO Preliminary (Tire-I)
(5) None of these Exam. 27.07.2008)
(IBPS RRBs Office Assistant 6. The compound interest accrued on an
CWE Exam. 09.09.2012) amount at the end of three years at 15 p.c.p.a.
is Rs. 6500.52. What is the amount ?
SBI PO EXAMS (1) Rs. 12480 (2) Rs. 10500
1. The difference between the simple interest (3) Rs. 14800 (4) Rs. 13620
on a certain sum at the rate of 10% per (5) None of these
annum for 2 years and compound interest (SBI PO Preliminary (Tire-I)
which is compounded every 6 months is Exam. 27.07.2008)
Rs. 124.05. What is the principal sum ? 7. The compound interest earned by Suresh
(1) Rs. 10,000 (2) Rs. 6,000 on a certain amount at the end of two years
(3) Rs. 12,000 (4) Rs. 8,000 at the rate of 8 p.c.p.a was Rs. 1,414.4. What
(5) None of these was the total amount that Suresh got back
(SBI Banks PO Exam. 20.08.2000) at the end of two years in the form of
2. Sudharshan invested Rs. 15,000 at interest principal plus interest earned ?
@ 10 p.c. p.a. for one year. If the interest (1) Rs.9,414.4 (2) Rs.9.914.4
is compounded every six months what (3) Rs.9,014.4 (4) Rs.8,914.4
amount will Sudharshan get at the end of (5) None of these
the year ? (SBI & Rural Business PO
(1) Rs. 16,537.50 Exam. 18.04.2010)
(2) Rs. 16, 500
(3) Rs. 16, 525.50 RBI GRADE—B OFFICER EXAMS
(4) Rs. 18,150 1. The compound interest accrued on an
(5) None of these amount at the end of two years at the rate of
(SBI Associate Banks 12 p.c.p.a is Rs 2,862. What is the amount
PO Exam. 21.07.2002) ?
3. What will be the compound interest on a (1) Rs 11,250 (2) Rs 12,200
sum of Rs. 25,000 after three years at the (3) Rs 13,500 (4) Rs 10,000
rate of 12 per cent p.a. ? (5) None of these
(1) Rs. 10123.20 (RBI Grade-B Officer Exam.06.02.2011)
(2) Rs. 9000.30
(3) Rs. 10483.20
(4) Rs. 9720 INSURANCE EXAMS
(5) None of these 1.
Rajan invested an amount of Rs. 8,000/-
(SBI Banks PO Exam. 18.05.2003) in a fixed deposit scheme for 2 years at
4. Mr. Rao invests a sum of Rs. 41,250 at the compound interest rate 5 percent p.a. How
rate of 6 p.c.p.a. What approximate amount much amount will Rajan get on maturity of
of compound interest will he obtain at the the fixed deposit ?
end of 3 years ? (1) Rs. 8,620/- (2) Rs. 8,840/-
(1) Rs.8,100 (2) Rs.7,425 (3) Rs. 8,800/- (4) Rs. 8,600/-
(3) Rs.8,210 (4) Rs.7,879 (5) None of these
(5) Rs.7,295 (LIC Assistant Administrative
(SBI PO Preliminary (Tire-I) Officer (AAO) Exam. 24.04.2005)
Exam. 27.04.2008) 2. Sudharshan invested Rs. 15,000 at interest
5. The simple interest accrued on an amount @ 10 p.c. p.a. for one year. If the interest is
of Rs. 20,000 at the end of three years is co mpo unded every si x mon ths wh at
Rs. 7,200. What would be the compound amount will Sudharshan get at the end of
interest accrued on the same amount at the the year ?
same rate in the same period ? (1) Rs. 16,537.50 (2) Rs. 16,500
(1) Rs. 8342.36 (3) Rs. 16,525.50 (4) Rs. 18,150
(5) None of these
LEARN MATHS FROM S.K. RAJU (9811549822, 9811649822)
 4
(LIC Assistant Administrative 7. The simple interest accrued on a sum of
Officer (AAO) Exam. 2006) certain principal is Rs 6,400 in four years
3. A sum of money becomes Rs. 13,380 after at the rate of 8 p.c.p.a. What would be the
3 years and Rs. 20,070 after 6 years on com- compound interest accrued on that principal
pound interest. The sum (in Rupees) is : at the rate of 2 p.c.p.a. in 2 years ?
(1) 8800 (2) 8890 (1) Rs 800 (2) Rs 808
(3) 8920 (4) 9040 (3) Rs 704 (4) Rs 700
(United India Insurance Co. (5) None of these
(AAO) Exam. 11.03.2007) (United India Insurance AO
4. The compound interest (in Rupees) on Rs. Exam. 27.03.2011)
8. A sum of Rs. 91,000 is borrowed at 20%
1
5,600 for 1 years at 10% per annum, per annum compounded annually. If the
2 amount is to be paid in three equal
compounded annually, is instalments,the annual instalment will be
(1) 882.70 (2) 873.50 (1) Rs. 43,200 (2) Rs. 42,800
(3) 868 (4) 840 (3) Rs. 42,500 (4) Rs. 42,300
(LIC Assistant Administrative (United India Insurance AAO
Officer (AAO) Exam, 07.06.2009) Exam. 03.06.2012)
5. The simple interest accrued on an amount 9. The compound interest accrued on an
of Rs. 27,500 at the end of three years is amount of Rs. 22,000 at the end of two
Rs. 10,230. What would be the approximate years is Rs 5,596.8. What would be the
compound interest accrued on the same simple interest accrued on the same amount
amount at the same rate in the same period ? at the same rate in the same period ?
(1) Rs. 11,550 (2) Rs. 12,620 (1) Rs.5,420 (2) Rs.5,360
(3) Rs. 10,950 (4) Rs. 11,900 (3) Rs.5,280 (4) Rs.5,140
(5) Rs. 13,500 (5) None of these
(New India Assurance AO (United India Insurance
Exam. 25.10.2009) AO Exam. 26.05.2013
6. A sum of money lent out at compound 10. The difference between the compound
interest increases in value by 50% in 5 interest and simple interest for the amount
years. A person wants to lend three different Rs. 5,000 in 2 years is Rs. 32. The rate of
sums x, y and z for 10, 15 and 20 years interest is
respectively at the above rate in such a way (1) 5% (2) 8%
that he gets back equal sums at the end of (3) 10% (4) 12%
their respective periods. The ratio x : y : z (NICL (GIC) AO (Finance)
is Exam. 15.12.2013)
(1) 6 : 9 : 4 (2) 9 : 4 : 6
(3) 9 : 6 : 4 (4) 6 : 4 : 9
(New India Assurance AO
Exam. 25.10.2009)

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 5
SHORT ANSWERS 35500 15  2
NATIONALISED BANKS = = Rs. 10650
100
& IBPS PO/MT/SO
Principal for another investment
1. (2) 2. (4)
= 35500 + 10650 = Rs. 46150
3. (3) 4. (4)
5. (3) 6. (4)  20 
3

7. (1) 8. (2)  C.I. = Rs. 46150   1    1
9. (3) 10. (4)  100  
11. (4) 12. (1)
 6 3 
13. (5) 14. (5)
= Rs. 46150  5   1
15. (1) 16. (4)   
17. (3) 18. (1)
19. (4) 20. (2)  216  125 
21. (2) 22. (1) = Rs. 46150  
 125 
23. (4)
46150  91
= Rs.
SBI PO EXAMS 125
1. (4) 2. (1) = Rs. 33597.20
3. (1) 4. (4) Total interest earned
5. (2) 6. (1) = Rs (10650 + 33597.20) = Rs. 44247.20
7. (2) 3. (3) Let the rate p.c. p.a. be r.
6216  100
RBI GRADE—B OFFICER EXAMS r = = 14
14800  3
1. (1)
3
 r  
INSURANCE EXAMS  C.I = P  100   1
 1 
 
1. (5) 2. (1)
3
3. (3) 4. (3)  14  
5. (1) 6. (3) = Rs. 14800  100   1
 1 
  
7. (2) 8. (1)
9. (3) 10. (2) 3
= Rs. 14800 1.14   1
EXPLANATIONS = Rs. 14800 (1.481544- 1)
NATIONALISED BANKS = Rs. 14800 × 0.481544
& IBPS PO/MT/SO = Rs. 7126.8512

15000  9  2 SI  100
1. (2) SI = = Rs. 2700 4. (4) Rate =
100 Principal × Time

 8 
2
 12000  100
= = 10%
CI = 12000  100   1
1  40000  3
  
 Rate Time 
 CI = Principal 1 100  1
2
 27  
= 12000  25   1  
  
3
 10  
 729  625  = 40000 1  100   1
= 12000     
 625 
3
= 40000 [(1.1) - 1]
104 = 40000 (1.331 - 1)
= 12000 × = Rs. 1996.8
625 = 40000 × 0.331 = Rs. 13240
 Total interest earned 5. (3) Let the rate of interest be R% per
= Rs. (2700 + 1996.8) = Rs. 4696.8 annum.
2. (4) Simple interest

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

 6
 R 
T
 R 11 1
 = -1=
 CI = P  100   1
1  100 10 10
 
1
 R 
2
  R = 100 × 10 = 10%
 5596.8 = 22000   1    1
 100   Principal × Time × Rate
 S.I =
2 100
5596.8  R 
 = 1   1 25500  3  10
22000  100 
= = Rs. 7650
2
100
 R  5596.8
 1   = 1 T
 100  22000  R  
7. (1) CI = P 1  100   1
 R 
2
22000  5596.8 27596.8   
 1   = =
 100  22000 22000  15 
4

2 = 20000  100   1
 1 
 R  275968 12544   
 1   = =
 100  220000 10000 4
 3  
R 12544 112 = 20000  20   1
1 
1+ = =   
100 10000 100
 23  4 
R 112 112  110 12
 = -1= = = 20000  20   1
100 100 100 100   
 R = 12%
 279841  160000 
Principal × Time × Rate = 20000  
 160000 
 SI =
100
119841
22000  2  12 = 20000 × = Rs 14980.125
= = Rs 5280 160000
100
Time
6. (4) Amount  Rate 
8. (2) Amount = Principal  1  
= Rs. (25500 + 8440.5)  100 
= Rs. 33940.5 2
 10   20 
  1  100 
T
 R  = 20000  1 
A = P 1    100   
 100  (Rate of interest for the first year
 R 
3 = 10% , Time = 2 half years)
 33940.5 = 25500  1   11 11 6 
 100  
= Rs.  20000     = Rs. 29040
3  10 10 5 
33940.5  R 
 = 1    C.I. = Rs. (29040 - 20000) = Rs. 9040
25500  100  9. (3) Interest is compounded half yearly.
339405 R 
3  R = 20% p.a. = 10% /half year

 = 1   T = 2 years = 4 half years
255000  100 
T
3
 R  
1331  R   C.I = P  100   1
  1  
 = 1   
1000  100 
4
3 3  10  
 11   R 
   = 1   = 10000  100   1
 1 
 10   100    

R 11  11 4 
1+ =
100 10 = 10000  10   1
  
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 7
 121   121    Rate Time 
= 10000   1   1 
 100   100    CI = P 1 100  1
 
221 21 2
= 10000 × × = Rs.4641  5  
100 100 = 10000 1  100   1
T
  
 R  
10. (4) C.I. = P  100   1
1 
 21  2 
  
= 10000 ×  20   1
  
 13.5  2 
= 7400 1  100   1 41
   = 10000 × = Rs. 1025
400
2
= 7400 1.135  1  R 
T

= 7400 × 0.288225 = Rs. 2132.87 14. (5) A = P  100   1
1 
  
T
 R   3
11. (4) C.I. = P  100   1
 1   15  
   = 2600   1    1
 100  
2
 15  
4167
= 45400  100   1
 1 
= 2600 × = Rs. 1354.275
   8000
2 P R T
= 45400 1.15   1 Simple interest =
100
= 45400 × 0.3225 = Rs. 14641.5
T
2600  15  3
 R  = = Rs. 1170
12. (1) Amount = P  1  100

 100   Difference = Rs. (1354.275 - 1170)
2 = Rs. 184.275  Rs 184
 R 
 5800 + 594.5 = 5800  1   15. (1) Compound interest
 100   T

R 
63945  R 
2 = P  100   1
1 
 = 1     
58000  100 
2
2  5  
441  R    1    1
 = 1   = 35000
400  100   100  
2
 21   R 
2 41
   = 1   = 35000 × = Rs.3587.5
 20   100  400
16. (4) Principal
R 21
1+ = SI  100 2000  100
100 20 = = = Rs 10000
Time × Rate 5 4
1
R= × 100  R 
T

20
 C.I = P  100   1
1 
= 5% per annum.  
SI  100 2
13. (5) Principal =  4  
Time  Rate = 10000 1  100   1
  
1000 100
= = Rs. 5000
45  26 2 
Case II = 10000  25   1
  
Principal = Rs. 10000

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

 8
 676   21 2 
= 10000   1
 625  = 10000  20   1
  
10000  51
= = Rs 816  441 
625 = 10000   1
 400 
2
 r   300  r 
17. (3) CI - SI for 3 years = P     10000  41
 100   100  = = Rs. 1025
400
2
 r   300  r  S.I × 100
 2994.134 = 2600     20. (2) Rate =
Principal × Time
 100   100 

2994.134 300  r  r 2 10800  100

 = = = 12% per annum
26000 1000000 22500  4
T
2994134000  R  

26000
= 300r2 + r3  CI = P  100   1
 1 
 
 115159 = 300r2 + r3
2
Option (3) r = 19% satisfies the equation.  12  
= 22500 1  100   1
SI ×100   
18. (1) Principal =
Time × Rate
 28 2 
6500  100 = 22500  25   1
= = Rs. 6250   
8  13

 T
  784  625 
R  = 22500  
CI = P  100   1
 1   625 
  
22500  159
 2
 = = Rs. 5724
8  625
= 6250  100   1
1 
   PR2
21. (2) Difference = 2
 27  2  100 
= 6250  25   1
   7300  36
= = Rs. 26.28
10000
 729  625  22. (1) Let the principal be Rs. x, then
= 6250  
 625  3
 15  650052
6250  104 x 1   -x=
= = Rs 1040  100  100
625
23 23 23 650052
x× × × - x =
20 20 20 100
S.I × 100
19. (4) Principal = 650052  8000
Time × Rate
 12167x - 8000x =
100
7200  100
= = Rs 10000 650052  8000
6  12
x= = 156 × 80
T
100  4167
 R  
= Rs. 12480
 C.I = P  100   1
 1 
  T
 R  
 2
 23. (4) C.I. = P  100   1
 1 
5    
= 10000  100   1
1 
  

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

 9
2 No. of periods = 2
 10  
 Amount
= 7790  100   1
1 
   2
 5 
 121   = 15000  1  
 1   100 
= 7790 
 100   21 21
= 15000 × ×
7790  21 20 20
= = Rs. 1635.90 = Rs. 16537.50
100
3. (1)
SBI PO EXAMS  12 
3

1. (4) Let the principal sum be Rs. P CI. = 25000  100   1
1 
  
PRT
SI =  T
100  R   
 C.I.  P 1    1 
 nt
   100   
R 
CI = P  100   1
1 
= 25000 {(1.12)3 - 1}
  
= 25000 (1.404928- 1)
R = 10% , T = 2 years, n = 2 = 25000 × 0.404928
because CI is compounded half = Rs. 10123.2
P  10  2 P T
SI = =  R  
100 5 4. (4) C.I. = P  100   1
1 
22
  
 10  
CI = P  100  2   1
 1   6 
3

  
= 41250  100   1
 1 
  
 21 4 
CI = P  20   1  148877  125000 
   = 41250  
 125000 
 194481 
CI = P   1 23877
160000  = 41250 × = Rs 7879.41
125000
34481  Rs. 7879
CI = P
16000 S.I.100
5. (2) Rate= Principal  Time
34481 P
CI - SI = P
160000 5 7200  100
= = 12% Per annum
34481  32000 20000  3
= P
160000 T
 R  
2481  C.I. = P  100   1
1 
= P  
160000
2
2481  12  
 16000 P = 124.05 = 20000  100   1
 1 
  
124.05 160000 3
P= = 20000 1.12   1
2481
= Rs. 8000 = 20000 × (1.404928 - 1)
2. (1) Interest is compounded half yearly. = Rs. 8098.56
Hence rate of interest 6. (1) Let the principal be Rs. P.
According to the question,
10
= = 5%
2

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

 10
T 2
 R    105 
C.I. = P  100   1
1  = 8000  
    100 

3
105 105
 15   = 8000 × × = Rs.8820
  1    1 100 100
 6500.52 = P
 100   2. (1) Interest is compounded half yearly.
Hence rate of interest
 6500.52 = P [1.520875 - 1]
10
6500.52 = = 5%
P= = Rs.12480 2
0.520875
No. of periods = 2
T
 R    Amount
7. (2) CI = P  100   1
 1 
2
    5 
= 15000  1  
2  100 
 8  
 1414.4 = P  100   1
1  21 21
  = 15000 × × = Rs. 16537.50
20 20
 1414.4 = P × 0.1664 3. (3) Let the sum be Rs. x. Then,
1414.4 3
P = = Rs. 8500  R 
0.1664 x 1   =13380 ...(i)
 100 
 Amount = Rs. (8500 + 1414.4)
= Rs. 9914.40 and,
6
 R 
RBI GRADE-B OFFICER EXAMS x 1   = 20070 ...(ii)
 100 
1. (1) If the principal be Rs. P, then
Dividing equation (ii) by (i),
T
 R   3
 R  20070 3
C.I = P  100   1
 1 
1   = =
    100  13380 2
2 From equation (i),
 12  
 2862 = P  100   1
1 
x ×
3
= 13380
  2
 28 2  2
 x = 13380 × = 8920
 2862 = P  25   1 3
 
Hence, the sum is Rs. 8920.
 784  625  4. (3) Amount
 2862 = P ×  625  Time
   Rate 
= Principal  1  
159  100 
 2862 = P ×
625 1
 1 
5600  1  10  
2
2862  625
P = = Rs. 11250 = Rs.   100  
159  
INSURANCE EXAMS
1. (5) P = 8000   1 
 10  
t = 2 years  10   2
5600  1    1  
r = 5% = Rs.   100   100  
t    
 r 
A = P 1  
 100   11 21 
= Rs.  5600    = Rs. 6468
2  10 20 
 5 
= 8000  1    Compound interest
 100 
= Rs. (6468 - 5600) = Rs. 868

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

 11
SI  100  5 25 125 
5. (1) Rate =
Principal × Time  91000 = x  6  36  216 
 
10230  100  180  150  125 
= = 12.4%  91000 = x  
27500  3  216 
T
 R   x  455
 C.I = P 1    1  91000 =
 100   216
91000  216
 12.4 3  x = = Rs. 43200
455
= 27500 1  100   1
   9. (3) Let the rate of interest be R% per
 27500 (1.42- 1) annum.
= 27500 × 0.42  T

R 
= Rs. 11550  CI = P  100   1
 1 
6. (3) Tricky approach  
According to the question, 2
2 3 4
 R  
3  3 3  5596.8 = 22000  100   1
 1 
  x =   y =   z = k let  
2  2 2
2
2 3 5596.8  R 
2  2  = 1   1
 x =   k, y =   k 22000  100 
3  3
2
4  R  5596.8
2  1   = 1 + 22000
and z =   k  100 
3
2
2 3 4  R  22000  5596.8
2  2 2  1   =
x : y : z =   k :   k :   k  100  22000
3  3 3
2
2  R  27596.8
2 2  1   = 22000
=1: :   =9:6:4  100 
3 3
R 12544 112
7. (2) P = S.I×100 1+ = =
100 10000 100
Rate × Time
6400  100 R 112 112  110 12
=  = -1= =
8 4 100 100 100 100
= Rs. 20000  R = 12%
 Rate Time  Principal × Time × Rate
C.I = P 1  100   1  SI = 100
  
2
22000  2  12
 2   = = Rs. 5280
100
= 20000  100   1
1 
   10. (2) Difference
= 20000 × 0.0404 = Rs. 808  Rate 2 
8. (1) If each instalment be Rs. x,  Principal  10000 
then.  
91000 =
 r2 
x x x  32 = 5000  10000 
+ 2 + 3
 
r  r   r 
1  r2 = 32 × 2 = 64
100 1   1  
 100   100 
 r = 64 = 8% per annum
 5  5 2  5 3 
 91000 = x  6   6    6  

LEARN MATHSFROM S.K. RAJU (9811549822, 9811649822)
 12
MODEL EXERCISES
1. A sum of money becomes eight times in 3 sum of money for 2 years at 15% per annum
years, if the rate is compounded annually. is Rs 45. Find the sum.
In how much time the same amount at the (1) Rs 7000 (2) Rs 2750
same compound interest rate will become (3) Rs 2000 (4) Rs 2250
sixteen times ? (5) None of these
(1) 6 years (2) 4 years 8. Two friends A and B jointly lent out Rs
(3) 8 years (4) 5 years 81600 at 4% per ann um co mpou nd
(5) None of these interest. After 2 years, A gets the same
2. If the difference between the simple and the amount as B gets after 3 years. The
compound interests on same principal investment made by B was
amount at 20% for 3 years is Rs 48, then (1) Rs 40000 (2) Rs 30000
the principal amount must be (3) Rs 45000 (4) Rs 38000
(1) Rs 650 (2) Rs 600 (5) None of these
(3) Rs 375 (4) Rs 400 9. A sum o f mone y is accumulatin g at
(5) None of these compound interest at a certain rate of
3. The difference between the simple interest interest. If simple interest instead of
and the compound interest compounded compound were reckoned, the interest for
annually at the rate of 12% per annum on the first two years would be diminished by
Rs 5000 for two years will be Rs 20 and that for the first three years by
(1) Rs 17.50 (2) Rs 36 Rs 61. Find the sum.
(3) Rs 45 (4) Rs 72 (1) Rs 7000 (2) Rs 8000
(5) None of these (3) Rs 7500 (4) Rs 6500
4. Sanjay borrowed a certain sum from Anil (5) None of these
at a certain rate of simple interest for 2 yr. 10. Rs 5887 is divided between Shyam and
He lent this sum to Ram at the same rate Ram, such that Shyam’s share at the end
of interest compounded annually for the of 9 years is equal to Ram’s share at the
same period. At the end of two years, he end of 11 years, compound annually at the
received Rs 4200 as compound interest but rate of 5% . The share of Shyam is
paid Rs 4000 only as simple interest, find (1) Rs 2088 (2) Rs 2000
the rate of interest. (3) Rs 3087 (4) Rs 2200
(1) 15% (2) 20% (5) None of these
(3) 35% (4) 10% 11. Amit borrowed a certain sum of money for
(5) None of these 2 years at 8% per annum on simple interest
5. Under the Rural Housing Scheme, the Delhi and immediately lent it to Ravi but at
Development Authority (DDA) allotted a compound interest and gained by Rs 16.
house to Kamal Raj for Rs 126100. This What amount did Amit borrow ?
payment is to be made in three equal (1) Rs 1600 (2) Rs 2500
annu al instalments. If the mone y is (3) Rs 24000 (4) Rs 1800
reckoned at 5% per annum compound (5) None of these
interest, then how much is to be paid by 12. A sum of Rs 30600 is divided between Anjali
Kamal Raj in each instalment ? and Arun, who are respectively 18 and 19
(1) Rs 45205 (2) Rs 47405 years old, in such a way that if their shares
(3) Rs 46305 (4) Rs 48505 are invested at 4% per annum compounded
(5) None of these annually, they shall receive the same
6. Ram takes a loan Rs 10000 and pays back amount on reaching 21 years of age. What
Rs 13310 after 3 years. The compound is the share of Anjali ?
in te re st rate per ann um w il l be (1) Rs 16000 (2) Rs 15000
approximately. (3) Rs 15600 (4) Rs 14600
(1) 8% (2) 9% (5) None of these
(3) 10% (4) 11% 13. A man borrows Rs 4000 from a bank at
(5) None of these 1
7. The difference between the compound 7 % compound interest. At the end of
2
interest and the simple interest on a certain
every year, he pays Rs 1500 as part

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

 13
repayment of loan and interest. How much (1) 4 years (2) 2 years
does he still owe to the bank after three (3) 6 years (4) 8 years
such instalments ? (5) None of these
(1) Rs 123.25 (2) Rs 125 16. Equal sums of money are deposited in two
(3) Rs 400 (4) Rs 469.18 different banks by M/s Enterprise, one at
(5) None of these compound interest, compounded annually
14. Sanju puts equal amounts of money one and the other at simple interest, both at
at 10% per annum compound interest 5% per annum. If after two years, the
payable half yearly and the second at a difference in the amounts comes to Rs 200,
certain per cent per annum compound what are the amounts deposited with each
interest payable yearly. If he gets equal bank ?
amounts after 3 years, what is the value of (1) Rs 72000 (2) Rs 64000
the second per cent ? (3) Rs 80000 (4) Rs 8400
(5) None of these
1
(1) 10 % (2) 10% 17. A sum of money lent at compound interest
4 for 2 years at 20% per annum would fetch
1 1 Rs 482 more if the interest was payable half
(3) 9 % (4) 8 % yearly than if it was payable annually. The
2 4
(5) None of these sum is
15. Ravi Sh ankar take s mo ney from the (1) Rs 10,000 (2) Rs 20,000
employees cooperative society at lower rate (3) Rs 40,000 (4) Rs 50,000
of interest and saves in a scheme, which (5) None of these
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.

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 14
SHORTANSWERS 100  5
1. (2) 2. (3) Principal = × 48 = Rs 375
64
3. (4) 4. (4)
5. (3) 6. (3)  r 
2
7. (3) 8. (1) 3. (4) CI - SI for 2 years = P  
9. (2) 10. (3)  100 
11. (2) 12. (2) 2
13. (1) 14. (1)  12 
= 5000  
15. (2) 16. (3)  100 
17. (2)
33
= 5000 × = Rs 72
EXPLANATIONS 25  25
1. (2) Let the sum of money be Rs x. 4. (4) Let the money borrowed be Rs x and
3
rate be r% .
 r  and Time = 2 yr
Then. 8x = x  1  
 100  xr 2
3  4000 = 100
 r 
8 = 1    rx = 200000
 100 
2
3  r 
 r  and x  1   = x + 4200
 23 =  1    100 
 100 
3 xr 2 2 xr
 r  x + + = 4200 + x
 1   = 23 10000 100
 100 
 20r + 4000 = 4200
r  r = 10%
1+ =2
100 5. (3) Let the amount of each instalment be
Again, let the sum will become 16 times in Rs x.
n years Then,
Then,
x x x
 r 
n 126100 = + 2 + 3
r  r   r 
 16x = x  1   1 1  100  1  
 100  100    100 
 16 = 2n  24 = 2n
n = 4 years  20  20  2  20 3 
2. (3) Let principal amount be Rs 100.  126100 = x  21   21    21  
 
100  20  3
Then, S.I. = = Rs 60
100 20  20 400 
 126100 = x × 1  21  441 
3 21  
 20 
and C.I. = 100  1   - 100
 100  20  441  420  400 
 126100 = x ×  441 
3 21  
6 364
= 100 ×   -100 = 20 1261
5 5
 126100 = x × ×
21 441
364 64
 C.I. - S.I. = 5
- 60 =
5 126100  21 441
 x= = Rs 46305
20  1261
64
If differences is Rs , Principal 6. (3) Let the rate of compound interest be r.
5 3
= Rs 100  r 
Then, 10000 ×  1   =13310
If difference is if 48,  100 

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 15
3 9 11
 r  1331  5   5 
 1   = 1000 Then, x 1   = (5887 - x) 1  
 100   100   100 
3 3
 r   11  x
 1   =    = 1.1025
 100   10  5887  x
 x = 5887 × 1.1025 - 1.1025x
r 11
1+ =  2.1025x = 5887 × 1.1025
100 10
 x = Rs 3087
r 1 11. (2) Let Amit borrow Rs x.
 = According to the question,
100 10
2
 r = 10%  r 
2 CI - SI for 2 years = P  
 r   100 
7. (3) CI - SI for 2 years = P  
 100  2
 8 
2  16 = x  
 15   100 
 45 = P  
 100  16  10000
x= = Rs 2500
45  100 100 64
 P= = Rs 2000 12. (2) Let the share of Anjali be x.
15  15
8. Let the investment made by  Then, the share of Arun is
(30600 - x).
B=x
3 2
Then, investment made by  4   4 
A = (81600 - x) x × 1   = (30600 - x)  1  
 100   100 
2 3
 4   4 
 (81600 - x)  1  100  = x  1  100  104
    x× = 30600 - x
100
 81600 - x = 1.04x
204
81600  x = 30600
x= = Rs. 40000 100
2.04
9. (2) Let the principal be P and rate of interest 30600 100
x= = Rs 15000
be r% . Then, principal (when difference 204
between C.I. and SI is for 2 years) is given 13. (1) Amount remaining after
by
 7.5 
2 1 year = 4000  1   - 1500 = Rs 2800
20  100   100 
P= .......(i)
r2
 7.5 
and difference between CI and SI is for 3 2 years = 2800  1   - 1500 = Rs 1510
years is given by  100 

61  106  7.5 
3 years =1510  1   - 1500 = Rs 123.25
P= 2 .......(ii)  100 
r  300  r 
14. (1) Let the value of second rate of interest
From eqs. (i) and (ii), be x% and equal amounts be P each.
20  10 4 61106 6 3
=  5   x 
r2
2
r  300  r  P × 1   = P × 1  
 100   100 
 r = 305 - 300 = 5% 2
 5   x 
20  10 4
 1   =  1  100 
From Eq. (i), P = = Rs 8000  100   
25
10. (3) Let Shyam’s share = x

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 16
105  105 100  x 441P 441P  400P 41P
 = = -P= =
100  100 100 400 400 400
 110.25 = 100 + x In IInd bank, we get
 = 10.25% P R T P 5 2 P
SI = = =
25 1 100 100 10
 x =10 = 10 %
100 4 41P P
15. (2) Let the sum of money be P.  100 - 100 = 200
T
 20   P = Rs 80000
 P  1  100   2P 17. (2) Let the sum be Rs. x.
 
4 2
T  10   20 
6 x 1   - x 1   = 482
   2  100   100 
5
4 2
 (1.2) T  2  11  6
Hence, least value of T is 2 yr.  x   - x   = 482
 10  5
16. (3) Let P be the amount deposit in two
different banks.  x (1.4641 - 1.44) = 482
In 1st bank,  0.024lx = 482
2 482
 5  x= = 20000
CI = P  1   -P 0.0241
 100 
2
 21 
= P  - P
 20 

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