No competitive exam in banking and similar especially SSC CGL is complete without questions from Simple Interest (SI) and Compound Interest (CI). Since, the questions are more or less similar to that the coaching is done for so these questions take the least time and have an accuracy level of 90-100%.
Weightage over the years for Si and Ci
|Topic / Year||2014||2015||2016||2017|
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The cost of borrowing money from bank is defined as Interest. It is of two types –
Simple interest – SI, is calculated only on the principal - P whereas,
Compound interest – CI that is calculated on the principal and on the accumulated interest of all earlier years i.e. interest on interest. This compounding effect on amount makes a big difference to the amount of interest that is payable on the principal.
Simple Interest = Principal x Interest Rate * Term of the loan (Time of Loan)
SI = P x I x n/100 when interest rate is taken in percent.
CI = P [(1 + i)n – 1]
Where, P = Principal, I = annual interest rate %, and n = number of years (compounding periods).
The interest here is added to the principal at the end of every period to arrive at the new principal that becomes amount for the next period.
Let P- be principal borrowed for a period of I.
Amount at end of period n=1 is
A= P (1+r/100)
New Principal that commences at the beginning of period II will be A i.e. P (1+r/100) = P*R where R=(1+r/100).
It is essential to follow study tactics and tips in order to strengthen overall prowess over the Quantitative Aptitude Section.
Question 1: Kamal lent out INR 60000. Out of these some part at 5% and remaining at 4% at simple interest. If total annual interest is INR 2560. What is the amount at 4%?
A) INR 40000
B) INR 44000
C) INR 30000
D) INR 45000
Question 2: The difference between the compound interest and the simple interest on a certain sum at 12% p.a. for two years is INR 90. What will be the value of the amount at the end of 3 years?
Question 3: Find the compound interest on INR 15,625 for 9 months at 16% per annum compounded quarterly.
A) INR 1851
B) INR 1941
C) INR 1951
D) INR 1961
Question 4: A sum of money at compound interest amounts to thrice itself in 3 years. In how many years will it be 9 times itself?
Question 5: Find the compound interest on INR 12450 for 9 months at 12% per annum compounded quarterly
A) INR 1154.45
B) INR 1125.18
C) INR 1198.72
D) INR 1164.32
For the simple and compound interest, one can refer to NCERT books of class IX to XII. These are scoring chapters so make sure to practice and score.
|Name of the Book||Author’s Name|
|Quantitative Aptitude||R S Aggarwal|
|SSC for Math||solved papers from 1997|
|Quicker Math||M Tyra|
|SSC Advance Math||Platform|
|Lucent SSC Higher Mathematics||Rishikesh Kumar|
*The article might have information for the previous academic years, please refer the official website of the exam.