Any candidate who aspires to become a public sector banker understands the importance of quantitative aptitude section in banking exams conducted by SBI & IBPS. Within this section, questions on simple interest and compound interest are a regular feature in the exam. However, it is sometimes seen that candidates experience difficulty in solving these questions and end up losing important marks.
To avoid this from happening, the experts at the institute for Best Bank Clerk Coaching in Delhi have provided below the tips and tricks for cracking SI & CI questions.
Question: The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half yearly is:
Solution: Here R = 6 %, but it is payable half yearly. This means the interest will be payable 2 times a year @ 6/2 = 3 %.
Question: A certain bank pays CI at 12% p.a. compounded quarterly. What is the effective rate of interest per annum?
Question: Find CI on a sum of Rs. 10,000 at 10% for 9 months, where the interest is compounded quarterly.
Hence, CI for 9 months will be = 7.69% of 10,000 = Rs. 769
Question: The difference between simple interest & compound interest compounded yearly on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is
Question: The difference between simple interest & compound interest (in Rs.) on Rs. 1200 for one year at 10% per annum reckoned half-yearly is
= 1200×25/10000 = Rs. 3
Question: The difference between compound interest compounded half yearly & simple interest on a certain sum of money at the rate of 12% per annum for 1 year is Rs. 36. The sum of money is
Question: If the difference between CI & SI on a certain sum of money for 3 years at 10% p.a. is Rs. 93, find the sum (in Rs.)
Question: If SI & CI on a certain sum for 2 years are Rs. 50 and Rs. 51 respectively, then find the sum
Putting the value of r in equation (ii), we get P = Rs. 625
Question: A sum of money amounts to Rs. 6690 in 3 years and Rs. 10035 in 6 years on CI. In this case the sum is
Question: A sum of money doubles itself at some rate of compound interest in 15 years. If the rate of interest remains the same, how many years will the sum take to become eight times of itself?
Solution: If a sum of money becomes x times in T years at CI, then it will be xn times in nT years at CI.
As the sum of money doubles itself (2 times) in 15 years, it will become 8 times (23 times) in = 3×15 = 45 years.
Now that you have learnt these short tricks taught at the center for Top SBI Coaching in Delhi, you should solve practice problems and attempt online mock tests as well. Attempting online tests will give further boost to your confidence. Moreover, it will make you better at time management, which is a key skill required to crack any competitive exam.
This article on Simple Interest and Compound Interest concepts & shortcuts will help you score some crucial marks in banking and other Govt. job exams. In case of any queries, you may contact Vidya Guru faculty members by writing at email@example.com.