Download Top-20 IBPS RRB PO Simple and Compound Questions PDF. Simple and Compound questions based on asked questions in previous year exam papers very important for the IBPS RRB PO (Officer Scale-I, II & III) exam<\/p>\n
Download Simple & Compound Interest Questions For IBPS RRB PO<\/a><\/p>\n 35 IBPS RRB PO Mocks @ Rs. 149. Enroll Now<\/a><\/p>\n 70 IBPS RRB (PO + Clerk) Mocks @ Rs. 199<\/a><\/p>\n Take a free mock test for IBPS RRB PO<\/a><\/p>\n Download IBPS RRB PO Previous Papers PDF<\/a><\/p>\n Question 1:\u00a0<\/b>Which of the following is the reason owing to which a large number of experts from the field of economics, social service, cinema, management, public administration, industry and also hailing from World Bank, ADB, FICCI, CII, CRISIL, etc. were called by the Planning Commission of India for a discussion and meeting ? a)\u00a0Only A<\/p>\n b)\u00a0Only B<\/p>\n c)\u00a0Only C<\/p>\n d)\u00a0Only A & B<\/p>\n e)\u00a0Only B & C<\/p>\n Instructions<\/b><\/p>\n Calculate the quantity I and the quantity II on the basis of the given information then compare them and answer the following questions accordingly.<\/strong><\/p>\n Question 2:\u00a0<\/b>Quantity 1: Simple interest charged by a bank on a sum of Rs. 1000 at the rate of 22% annum for 2 years. a)\u00a0Quantity 1 > Quantity 2<\/p>\n b)\u00a0Quantity 1 $\\geq$ Quantity 2<\/p>\n c)\u00a0Quantity 1 < Quantity 2<\/p>\n d)\u00a0Quantity 1 $\\leq$ Quantity 2<\/p>\n e)\u00a0Quantity 1 = Quantity 2<\/p>\n Question 3:\u00a0<\/b>If the difference in compound interest and simple interest at 20% per annum in two years for certain sum is 80. Then find the difference in the compound and simple interest on the same sum at 10% annum after 3 years?<\/p>\n a)\u00a060<\/p>\n b)\u00a068<\/p>\n c)\u00a075<\/p>\n d)\u00a062<\/p>\n e)\u00a055<\/p>\n Question 4:\u00a0<\/b>The difference between the compound interest and simple interest on a sum for a period of 3 years at 20% per annum is Rs. 256. What is the principal amount?<\/p>\n a)\u00a03000<\/p>\n b)\u00a02000<\/p>\n c)\u00a04000<\/p>\n d)\u00a05000<\/p>\n e)\u00a0None of these<\/p>\n Question 5:\u00a0<\/b>Mahesh borrows a certain sum from a moneylender at 10% p.a. simple interest. He lends the amount at 10% p.a. compound interest for a period of 3 years. He earns Rs.527 in the process. How much did Mahesh owe the moneylender by the end of 3 years?<\/p>\n a)\u00a0Rs.17,000<\/p>\n b)\u00a0Rs.18,000<\/p>\n c)\u00a0Rs.22,100<\/p>\n d)\u00a0Rs.21,000<\/p>\n e)\u00a0Rs.34,000<\/p>\n Question 6:\u00a0<\/b>The difference between the compound interest and simple interest on a sum for a period of 2 years at 13% per annum is Rs. 2197. What is the principal?<\/p>\n a)\u00a0Rs.2,60,000<\/p>\n b)\u00a0Rs.75,000<\/p>\n c)\u00a0Rs.1,50,000<\/p>\n d)\u00a0Rs.1,30,000<\/p>\n e)\u00a0Rs.1,19,000<\/p>\n Free Mock Test for IBPS RRB PO<\/a><\/p>\n IBPS RRB Clerk Previous Papers<\/a><\/p>\n Question 7:\u00a0<\/b>Daniel borrowed a certain sum at simple interest at some rate and lent it at the same rate but charged compound interest. He lent the amount for a period of 2 years. If the rate of interest is 10%, what is Daniel’s profit as a percentage of the total amount he has to repay (simple interest)?<\/p>\n a)\u00a01%<\/p>\n b)\u00a010%<\/p>\n c)\u00a00.833%<\/p>\n d)\u00a08.33%<\/p>\n e)\u00a00.5%<\/p>\n Question 8:\u00a0<\/b>If the rate of return increases by 2%, the simple interest received on a certain principal increases by Rs.20 . If the time period increases by 2 years, the simple interest on the same sum increases by Rs. 100. What is the interest for 1 year?<\/p>\n a)\u00a0400<\/p>\n b)\u00a0200<\/p>\n c)\u00a01000<\/p>\n d)\u00a050<\/p>\n e)\u00a0100<\/p>\n Question 9:\u00a0<\/b>A bank offers a simple interest of 10% p.a on a sum of 15000 for two years. What is the difference in interests, if the bank offered compound interest instead?<\/p>\n a)\u00a0200<\/p>\n b)\u00a0150<\/p>\n c)\u00a0300<\/p>\n d)\u00a02000<\/p>\n e)\u00a0350<\/p>\n Question 10:\u00a0<\/b>Amit deposited a certain sum in a bank which offers a simple interest of 10 % semi annually. At the end of 2 years, he got the final amount as Rupees x. If he had deposited the same amount in another bank which was offering a simple interest at the rate of 16 % per annum then the final amount would have been Rupees 960 less. Find the amount invested by him in the bank.<\/p>\n a)\u00a015000<\/p>\n b)\u00a018000<\/p>\n c)\u00a012000<\/p>\n d)\u00a010000<\/p>\n e)\u00a09000<\/p>\n Question 11:\u00a0<\/b>A person lent same amount of Rs 10000 at 30% Simple interest for time period of 2 years and 20% Compound interest for time period of 3 years then what is the difference between the interest received ?<\/p>\n a)\u00a01200<\/p>\n b)\u00a01250<\/p>\n c)\u00a01280<\/p>\n d)\u00a01240<\/p>\n e)\u00a01260<\/p>\n Question 12:\u00a0<\/b>Compound interest on a certain sum for 3 years is Rs 2880 and for 4 years it is Rs 3456. What is the value of sum taken ?<\/p>\n a)\u00a0Rs 5000<\/p>\n b)\u00a0Rs10000<\/p>\n c)\u00a0Rs 8000<\/p>\n d)\u00a0Rs 9000<\/p>\n e)\u00a0Rs 7000<\/p>\n Instructions<\/b><\/p>\n Calculate the quantity I and the quantity II on the basis of the given information then compare them and answer the following questions accordingly.<\/strong><\/p>\n Question 13:\u00a0<\/b>Quantity 1: Simple interest charged by a bank on a sum of Rs. 1000 at the rate of 22% annum for 2 years. a)\u00a0Quantity 1 > Quantity 2<\/p>\n b)\u00a0Quantity 1 $\\geq$ Quantity 2<\/p>\n c)\u00a0Quantity 1 < Quantity 2<\/p>\n d)\u00a0Quantity 1 $\\leq$ Quantity 2<\/p>\n e)\u00a0Quantity 1 = Quantity 2<\/p>\n Question 14:\u00a0<\/b>If the difference in compound interest and simple interest at 20% per annum in two years for certain sum is 80. Then find the difference in the compound and simple interest on the same sum at 10% annum after 3 years?<\/p>\n a)\u00a060<\/p>\n b)\u00a068<\/p>\n c)\u00a075<\/p>\n d)\u00a062<\/p>\n e)\u00a055<\/p>\n Question 15:\u00a0<\/b>The difference between the compound interest and simple interest on a sum for a period of 3 years at 20% per annum is Rs. 256. What is the principal amount?<\/p>\n a)\u00a03000<\/p>\n b)\u00a02000<\/p>\n c)\u00a04000<\/p>\n d)\u00a05000<\/p>\n e)\u00a0None of these<\/p>\n Quantitative Aptitude formulas PDF<\/a><\/p>\n 520 Banking Mocks – Just Rs. 499<\/a><\/p>\n Question 16:\u00a0<\/b>Krishna borrows Rs. 10,000 from a bank at 10% per annum compounded annually. He returned the sum in 2 equal installments at the end of first year and second year. Find out the amount he paid in each installment?<\/p>\n a)\u00a05500<\/p>\n b)\u00a05671.90<\/p>\n c)\u00a06000<\/p>\n d)\u00a05761.90<\/p>\n e)\u00a05840.90<\/p>\n Question 17:\u00a0<\/b>Rohit borrowed a certain sum from a bank at 10% per annum compounded annually. He invested this amount in mutual funds. After two years, he got 30% return on his investment. If he is left with Rs. 900 after clearing bank\u2019s dues. Figure out the amount that Rohit borrowed from the bank?<\/p>\n a)\u00a015000<\/p>\n b)\u00a020000<\/p>\n c)\u00a010000<\/p>\n d)\u00a0100000<\/p>\n e)\u00a0None of the above.<\/p>\n Question 18:\u00a0<\/b>Mahesh borrows a certain sum from a moneylender at 10% p.a. simple interest. He lends the amount at 10% p.a. compound interest for a period of 3 years. He earns Rs.527 in the process. How much did Mahesh owe the moneylender by the end of 3 years?<\/p>\n a)\u00a0Rs.17,000<\/p>\n b)\u00a0Rs.18,000<\/p>\n c)\u00a0Rs.22,100<\/p>\n d)\u00a0Rs.21,000<\/p>\n e)\u00a0Rs.34,000<\/p>\n Question 19:\u00a0<\/b>The difference between the compound interest and simple interest on a sum for a period of 2 years at 13% per annum is Rs. 2197. What is the principal?<\/p>\n a)\u00a0Rs.2,60,000<\/p>\n b)\u00a0Rs.75,000<\/p>\n c)\u00a0Rs.1,50,000<\/p>\n d)\u00a0Rs.1,30,000<\/p>\n e)\u00a0Rs.1,19,000<\/p>\n Question 20:\u00a0<\/b>Ram borrows Rs. 50,000 from Arun compounded half yearly at 20% per annum. The interest for a period of 2 years will be<\/p>\n a)\u00a0Rs. 22,000<\/p>\n b)\u00a0Rs. 73,205<\/p>\n c)\u00a0Rs. 23,205<\/p>\n d)\u00a0Rs. 22,205<\/p>\n e)\u00a0Rs. 72,205<\/p>\n 18000 Free Solved Questions – Banking Study Material<\/a><\/p>\n 35 IBPS RRB PO Mocks @ Rs. 149. Enroll Now<\/a><\/p>\n Answers & Solutions:<\/strong><\/span><\/p>\n 1)\u00a0Answer\u00a0(A)<\/strong><\/p>\n 2)\u00a0Answer\u00a0(E)<\/strong><\/p>\n Simple interest paid to bank = 1000*.22*2 = Rs. 440 3)\u00a0Answer\u00a0(D)<\/strong><\/p>\n Let us assume \u2018P\u2019 is the principal which is borrowed. Difference between compound and simple interest = 0.44P – 0.4P = 0.04P Simple interest accrued in 3 years at 10% per annum = $\\frac{2000 * 10 * 3}{100}$ = 600 So the difference in C.I. and S.I. at 10% annum after 3 years = 662-600 = 62<\/p>\n 4)\u00a0Answer\u00a0(B)<\/strong><\/p>\n Let assume the principal amount = X Difference between compound and simple interest = 0.728X – 0.6X = 0.128X 5)\u00a0Answer\u00a0(C)<\/strong><\/p>\n Amount by the end of 3 years in compound interest = $p(1+r)^n$ 6)\u00a0Answer\u00a0(D)<\/strong><\/p>\n Difference between compound and simple interests for a period of 2 years = $\\frac{pr^2}$. 7)\u00a0Answer\u00a0(C)<\/strong><\/p>\n Let $p$ be the principal. Time period = 2 years. Let $r$ be the rate of interest. We know that rate of interest = $10$%. 8)\u00a0Answer\u00a0(D)<\/strong><\/p>\n Let,<\/p>\n i = prt\/100<\/p>\n Given, or pr = 5000<\/p>\n We know that the interest for 1st year = p * r * 1\/100 = 5000\/100 = 50<\/p>\n 9)\u00a0Answer\u00a0(B)<\/strong><\/p>\n SI = PRT\/100<\/p>\n SI = 15000 * 2 * 0.1 = 3000<\/p>\n In CI, A = 15000 * 1.21<\/p>\n CI = 15000 * .21 = 3150<\/p>\n Difference = 150<\/p>\n 10)\u00a0Answer\u00a0(C)<\/strong><\/p>\n Let the initial amount deposited by him be \u2018P\u2019. Hence, the interest earned on it in first case will be 11)\u00a0Answer\u00a0(C)<\/strong><\/p>\n Given P=10000 12)\u00a0Answer\u00a0(B)<\/strong><\/p>\n Let R%=r 13)\u00a0Answer\u00a0(E)<\/strong><\/p>\n Simple interest paid to bank = 1000*.22*2 = Rs. 440 14)\u00a0Answer\u00a0(D)<\/strong><\/p>\n Let us assume \u2018P\u2019 is the principal which is borrowed. Difference between compound and simple interest = 0.44P – 0.4P = 0.04P Simple interest accrued in 3 years at 10% per annum = $\\frac{2000 * 10 * 3}{100}$ = 600 So the difference in C.I. and S.I. at 10% annum after 3 years = 662-600 = 62<\/p>\n 15)\u00a0Answer\u00a0(B)<\/strong><\/p>\n Let assume the principal amount = X Difference between compound and simple interest = 0.728X – 0.6X = 0.128X 16)\u00a0Answer\u00a0(D)<\/strong><\/p>\n Let us assume Krishna paid x rupees in each instalment then at the end of first year Taking second year into consideration Hence we can say that Krishna paid 5761.90 rupees in each instalment.<\/p>\n 17)\u00a0Answer\u00a0(C)<\/strong><\/p>\n Let assume Rohit borrowed amount X from the bank. The amount that Rohit owed to bank = $X * (1+\\frac{10}{100})^{2}$ So, Rohit\u2019s net profit in this entire transaction = 1.30X-1.21X = 0.09X<\/p>\n $\\therefore$ 0.09X = 900 Hence, we can say that Rohit borrowed Rs. 10000 from the bank.<\/p>\n 18)\u00a0Answer\u00a0(C)<\/strong><\/p>\n Amount by the end of 3 years in compound interest = $p(1+r)^n$ 19)\u00a0Answer\u00a0(D)<\/strong><\/p>\n Difference between compound and simple interests for a period of 2 years = $\\frac{pr^2}$. 20)\u00a0Answer\u00a0(C)<\/strong><\/p>\n The amount has been borrowed at 20% p.a. and is compounded every half year. Interest = Rs. $73,205$ – Rs. $50,000$.
\nA. The Government of India is of the opinion that the Planning Commission should not be a small group of 10-12 members, Instead it should be a body of at least 350 experts representing all States and all major fields. These people were called to express their views on the proposal.
\nB. The people were called as a part of various consultative groups set up by the Planning Commission so that a through mid-term appraisal of the 10th Five Year Plan can be conducted.
\nC. The Planning Commission wishes to take the help of experts from various fields so that it can reorient the 10th Plan on the lines of UPA Government\u2019s Common Minimum Programme<\/p>\n
\nQuantity 2: Compound interest charged by another bank on a sum of Rs. 1000 at the rate of 20% annum for 2 years compounded annually.<\/p>\n
\nQuantity 2: Compound interest charged by another bank on a sum of Rs. 1000 at the rate of 20% annum for 2 years compounded annually.<\/p>\n
\nCompound interest paid to bank = $1000(1 + \\dfrac{20}{100})^2 – 1000$ = Rs. 440
\nHence, we can say that Quantity 1 = Quantity 2. Option E is the correct answer.<\/p>\n
\nSimple interest accrued in 2 years = $\\frac{P * 20 * 2}{100}$ = 0.4P
\nCompound interest accrued in 2 years = P *$(1 + \\frac{20}{100} )^{2}$ – P = 0.44P<\/p>\n
\n$\\Rightarrow$ 80 = 0.04 P
\n$\\Rightarrow$ P = 2000<\/p>\n
\nCompound interest accrued in 3 years at 10% per annum = 2000 *$(1 + \\frac{10}{100} )^{3}$ – 2000 = 662<\/p>\n
\nSimple interest for 3 years = $\\frac{Principal*Rate*Time}{100}$ = $\\frac{X*20*3}{100}$ = 0.6X
\nCompound interest payable for 3 years = X*$(1+\\frac{20}{100})^{3}$-X = 0.728X<\/p>\n
\n$\\Rightarrow$ 0.128X = 256
\n$\\therefore$ X = 2000 (ans)<\/p>\n
\n=> Amount received by Mahesh = $p*1.1^3$
\nAmount received by Mahesh = $1.331p$
\nAmount Mahesh owes = $p+pnr$ = $p+p*3*0.1$ = $1.3p$.
\nProfit = $1.331p – 1.3p = 0.031p$
\nIt has been given that $0.031p = 527$
\n=> $p = Rs. 17000$.
\nAmount that Mahesh will owe = $1.3*17000 = 22100$
\nTherefore, option C is the right answer.<\/p>\n
\nTherefore, $p*0.13*0.13= 2197$
\n$p = 2197\/0.0169$
\n$p = $ Rs. $1,30,000$.
\nTherefore, option D is the right answer.<\/p>\n
\nAmount Daniel will owe by the end of 2 years = $p + 2pr$
\nAmount Daniel will receive by the end of 2 years = $p(1+r)^2$
\n= $p (1+r^2 + 2r)$
\n=$p + pr^2 + 2pr$.
\nProfit realized by Daniel = $p + pr^2 + 2pr -p – 2pr$.
\n=> Profit = $pr^2$
\nProfit percentage = $\\frac{pr^2}{p+2pr}$
\n=$\\frac{r^2}{1+2r}$<\/p>\n
\n=> Profit percentage = $\\frac{0.01}{1.2}$ = $0.833$%.
\nTherefore, option C is the right answer.<\/p>\n
\ni + 20 = p * (r+2) * t \/100<\/p>\n
\n$A = p(1 + (r\/100))^2$<\/p>\n
\nP*10*4\/100 = .4P ( The interest is calculated semi annually. Hence, there are 4 time periods).
\nIn second case, the interest earned will be
\nP*16*2\/100 = .32P
\nWe have been given that
\n.4P – .32P = .08P
\nWe have been given that
\n.08P = 960
\n=> P = 12000
\nThus, option C is the correct answer.<\/p>\n
\nR=30%
\nT=2 years
\nI=(10000*2*30)\/100
\n=Rs 6000
\nR%=r
\nCI=$P(1+(r\/100))^{3}-P$
\nCI=10000(216\/125) -10000
\nCI=10000(91\/125)
\nCI=7280
\nDifference=7280-6000
\n=Rs 1280<\/p>\n
\nGiven $ Pr(1+r)^{2}$=2880
\n$ Pr(1+r)^{3}$=3456
\nDividing both the equations we have
\n1\/(1+r)=5\/6
\n6=5+5r
\nr=1\/5
\nR=(1\/5)*100
\nR=20%
\nTherefore $P(1\/5)(1+(1\/5))^{2}$=2880
\nP(36\/125)=2880
\nP=2880*125\/36
\nP=Rs 10000<\/p>\n
\nCompound interest paid to bank = $1000(1 + \\dfrac{20}{100})^2 – 1000$ = Rs. 440
\nHence, we can say that Quantity 1 = Quantity 2. Option E is the correct answer.<\/p>\n
\nSimple interest accrued in 2 years = $\\frac{P * 20 * 2}{100}$ = 0.4P
\nCompound interest accrued in 2 years = P *$(1 + \\frac{20}{100} )^{2}$ – P = 0.44P<\/p>\n
\n$\\Rightarrow$ 80 = 0.04 P
\n$\\Rightarrow$ P = 2000<\/p>\n
\nCompound interest accrued in 3 years at 10% per annum = 2000 *$(1 + \\frac{10}{100} )^{3}$ – 2000 = 662<\/p>\n
\nSimple interest for 3 years = $\\frac{Principal*Rate*Time}{100}$ = $\\frac{X*20*3}{100}$ = 0.6X
\nCompound interest payable for 3 years = X*$(1+\\frac{20}{100})^{3}$-X = 0.728X<\/p>\n
\n$\\Rightarrow$ 0.128X = 256
\n$\\therefore$ X = 2000 (ans)<\/p>\n
\nPrincipal amount = 10000, Interest payable = $\\frac{10}{100}*10000$ = 1000
\nPrinciple amount left for second year = total payable at end of first year – instalment amount
\n$\\Rightarrow$ 10000+1000 – x = 11000 – x<\/p>\n
\nInterest payable = $\\frac{10}{100}*(11000 – x)$ = 1100 – 0.1x
\nSo second instalment = Principal amount + interest = x
\n$\\Rightarrow$ (11000 – x) + (1100 – 0.1x) = x
\n$\\Rightarrow$ 12100 = 2.1x
\n$\\Rightarrow$ x = 5761.90<\/p>\n
\nReturn on investment = 30%
\nTotal money accumulated after 2 years =$\\frac{100+30}{100} * X$ = 1.3X<\/p>\n
\n= 1.21X<\/p>\n
\nX = 10000<\/p>\n
\n=> Amount received by Mahesh = $p*1.1^3$
\nAmount received by Mahesh = $1.331p$
\nAmount Mahesh owes = $p+pnr$ = $p+p*3*0.1$ = $1.3p$.
\nProfit = $1.331p – 1.3p = 0.031p$
\nIt has been given that $0.031p = 527$
\n=> $p = Rs. 17000$.
\nAmount that Mahesh will owe = $1.3*17000 = 22100$
\nTherefore, option C is the right answer.<\/p>\n
\nTherefore, $p*0.13*0.13= 2197$
\n$p = 2197\/0.0169$
\n$p = $ Rs. $1,30,000$.
\nTherefore, option D is the right answer.<\/p>\n
\nTherefore, time period = 2*2 = 4 and effective interest rate = 20\/2 = 10% p.a.
\nAmount = $p(1+\\frac{r}{100})^2$
\n= $50,000*(1.1)^4$
\n= Rs. $73,205$<\/p>\n
\n= Rs.$23,205$.
\nTherefore, option C is the right answer.<\/p>\n