{"id":25478456,"date":"2023-01-06T15:29:12","date_gmt":"2023-01-06T09:59:12","guid":{"rendered":"https:\/\/entri.app\/blog\/?p=25478456"},"modified":"2025-01-06T12:25:16","modified_gmt":"2025-01-06T06:55:16","slug":"compound-interest-questions-and-answers","status":"publish","type":"post","link":"https:\/\/entri.app\/blog\/compound-interest-questions-and-answers\/","title":{"rendered":"Compound Interest Questions and Answers for Bank Exams 2025"},"content":{"rendered":"

In India, Banking is a best option for fresh graduates as well as for experienced office workers. Like other government exams, the Bank exam is also one among them. Majority of professionals prefer banking as it guarantees job security, satisfying salaries and many bonuses provided for their employees. This is why a large number of candidates go for bank exams. To crack this opportunity the aspirants need to be prepared well. Prior to the preparations one should get to know about the syllabus, pattern and the selection process involved. Let us check the compound interest questions with solutions<\/strong> which is one of the important topic in numerical section of bank exams.\u00a0 This article includes Compound Interest Questions and Answers for Bank Exams 2025<\/p>\n

Compound Interest is the most asked topic in bank exams. As the compound interest is mostly related to logic you need to practice a lot by trying to solve those questions. Are you the one currently preparing for bank exams? Then get going through this article, where we provided you with some of the most repeatedly asked problems on compound interest <\/strong>which will guide you for the best.<\/p>\n

DAILY CURRENT AFFAIRS FREE PDF<\/a><\/p>\n

Compound Interest Questions and Answers for Bank Exams 2025<\/strong><\/h2>\n

\u00a0<\/strong>Listed below are some of the selected Compound Interest questions along with solutions for Bank Exams 2024<\/p>\n

1. For 50% increase in an amount in 5 years at simple interest, then the compound interest of Rs.12000 after 3 years at the same rate will be;<\/p>\n

Answer:<\/strong>\u00a0 Rs.3972<\/p>\n

Note:\u00a0 <\/strong>\u00a0In S.I,<\/p>\n

Let P = 100, l = 50, T = 5 years<\/p>\n

R = 50*100\/100*5 = 10%<\/p>\n

In C.I,<\/p>\n

P = 12000, T = 3 years, R = 10%<\/p>\n

C.I = {12000*(1 + 10\/100) ^3 \u2013 1}<\/p>\n

= 3972<\/p>\n

2. Rani saves an amount of Rs.800 every year and lends that amount at 10% as compound interest annually. What will be the amount after 3 years?<\/p>\n

Answer:<\/strong>\u00a0\u00a0 Rs.2912.8<\/p>\n

Note:\u00a0 <\/strong>\u00a0800*(11\/10)3 <\/sup>= 1064.8<\/p>\n

800*(11\/10)2<\/sup> = 968<\/p>\n

800*(11\/10) = 880<\/p>\n

=2912.8<\/p>\n

3. The difference between interest received by Ram and Rani is Rs.405 on Rs.4500 for 3 years. Then the difference in rate of interest is,<\/p>\n

Answer:<\/strong>\u00a0 3%<\/p>\n

Note:<\/strong>\u00a0\u00a0 4500*3\/100(R1-R2) = 405<\/p>\n

R1-R2 = 3%<\/p>\n

4. Rahul lends an amount to Ram for 2 years at 20% on simple interest. Ram gives the whole amount to Rani for 2 years on compound interest at the same rate annually. Find the percentage earning of Ram at the end of two years on the whole amount.<\/p>\n

Answer:<\/strong>\u00a0 4%<\/p>\n

Note:\u00a0 <\/strong>\u00a0SI =20*2=40%<\/p>\n

CI = 20+20+ (400\/100) =44%<\/p>\n

Difference = 4%<\/p>\n

5. Raj and Ram have to clear their loans by paying two equal annual installments of Rs.30000 each. Raj pays at 10% per annum of simple interest and Ram pays at 10% compound interest per annum. Find the difference in their payments?<\/p>\n

Answer:<\/strong>\u00a0 300<\/p>\n

Note:\u00a0\u00a0 <\/strong>\u00a0D = [(30000*110\/100*110\/100) \u2013 30000] \u2013 30000*10*2\/100<\/p>\n

D = 300<\/p>\n

Subscribe Entri for weekly study materials for Bank Examinations<\/strong><\/a><\/p>\n

6. An amount of Rs.9000 is invested by Arjun in a fixed deposit scheme for two years at compound interest rate 6% per annum. How much will he get on maturity of the fixed amount?<\/p>\n

Answer:<\/strong>\u00a0 Rs.10,112<\/p>\n

Note:\u00a0 <\/strong>\u00a0Amount = 9000*106\/100*106\/100<\/p>\n

=10,112<\/p>\n

7. The compound interest on Rs.7000 for 3 years at 5% for the first year, 7% for second year. Then, what will be the CI for 10% for the third year?<\/p>\n

Answer:<\/strong>\u00a0 Rs.1651<\/p>\n

Note:\u00a0\u00a0 <\/strong>\u00a0A= 7000*105\/100*107\/100*110\/100<\/p>\n

=8651<\/p>\n

CI = 8651-7000 = 1651<\/p>\n

8. What is the difference in rate of interest? If the difference between interest received by A and B is Rs.315 on Rs.3500 for three years.<\/p>\n

Answer:<\/strong>\u00a0 3%<\/p>\n

Note: <\/strong>\u00a03500*3\/100(R1-R2) = 315<\/p>\n

= 3%<\/p>\n

9.What will be the least number of years in which the sum added at 25% rate of interest will be more than doubled?<\/p>\n

Answer: <\/strong>\u00a04 years<\/p>\n

Note:\u00a0\u00a0 <\/strong>\u00a0Amount >= P*(1+25\/100) ^n<\/p>\n

n=4, (625\/625) >2<\/p>\n

10. The effective annual rate of 10 percent per annum compounded half yearly is<\/p>\n

Answer:<\/strong>\u00a0 10.25<\/p>\n

Note:\u00a0 <\/strong>\u00a0A = 100*(1+5\/100) ^2<\/p>\n

A = 110.25<\/p>\n

Quantitative aptitude books for bank exams<\/a><\/p>\n

11. What is the difference in SI and CI on Rs.1000 for one year at 10 percent per annum computed half yearly?<\/p>\n

Answer: <\/strong>\u00a02.5<\/p>\n

Note: <\/strong>\u00a0SI = (1000\/100) = 100<\/p>\n

CI = [1000(1+ (5\/100)) ^2 \u2013 1000<\/p>\n

SI \u2013 CI =D = 2.5<\/p>\n

12. The rate of interest per annum for a sum of money invested at CI for Rs.800 in three years and for Rs.840 in four years<\/p>\n

Answer:<\/strong>\u00a0 5%<\/p>\n

Note: <\/strong>\u00a0CI for three years = 800<\/p>\n

CI for four years = 840<\/p>\n

CI for one year = 40<\/p>\n

R = (100*40)\/ (800*1) = 5%<\/p>\n

13. What is the difference between compound and simple rates of interest on Rs.10000 for 3 years at 5% per annum?<\/p>\n

Answer: <\/strong>\u00a076.25<\/p>\n

Note: <\/strong>\u00a0SI, at rate 5% for 3 years 5*3 =15%<\/p>\n

CI, at rate of 5% for 3 years,<\/p>\n

Net effect for 2 years 5+5 + 5*5\/100 = 10.25%<\/p>\n

For next 2 years, 10.25+ 5+10.25*5\/100 = 15.7625%<\/p>\n

So, for 3 years the given compound interest rate is 15.7625%<\/p>\n

D = 15.7625 \u2013 15% = 0.7625%<\/p>\n

0.7625% of 1000 = 76.25<\/p>\n

14. A part from 70000 is lent out at 10% p.a. The rest is lent out at 5% per annum after one year. The ratio is 1:2 of interest after 3 years from the time the first amount was lent out. Then, what will be the second part which is lent out at 5%?<\/p>\n

Answer:<\/strong>\u00a0 60000<\/p>\n

Note:<\/strong>\u00a0 10*3*a\/5*2*b = \u00bd<\/p>\n

Where, a \/ b= 1\/6<\/p>\n

6\/7*70000 = 60000<\/p>\n

Check how to improve calculation speed for bank exams<\/a><\/p>\n

15. What is the rate of compound interest per annum for a sum of Rs.900 in three years and Rs.1080 in four years at compound interest?<\/p>\n

Answer:<\/strong>\u00a0 20%<\/p>\n

Note: <\/strong>\u00a0(1080-900\/900)*100<\/p>\n

180*100\/900 = 20%<\/p>\n

\"compound<\/a><\/p>\n

Hope the questions and answers provided in this article will benefit you for the Bank Exam 2024. Numerical section or quantitative aptitude plays a very important role when\u00a0 attempting bank exams. Quantitative aptitude requires rigorous practice to be cracked. One needs to first check for the bank exam that they wish to appear for. Then look for the syllabus of that particular bank exam sections. Select each topic from the syllabus, understand the concepts and then start practicing it. Check for different questions that appeared in the previous years and try to solve them. Take down study notes and also revise before the exams. Attempting mock exam is one crucial part of preparation. Check for free mock tests online and get yourself ready as you prepare yourself for the bank examinations. Read, Practice, Do it!!<\/p>\n","protected":false},"excerpt":{"rendered":"

In India, Banking is a best option for fresh graduates as well as for experienced office workers. Like other government exams, the Bank exam is also one among them. Majority of professionals prefer banking as it guarantees job security, satisfying salaries and many bonuses provided for their employees. This is why a large number of […]<\/p>\n","protected":false},"author":41,"featured_media":25550750,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[802,246,558],"tags":[],"class_list":["post-25478456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-banking","category-general-knowledge"],"acf":[],"yoast_head":"\nCompound Interest Questions and Answers for Bank Exams 2024 - Entri Blog<\/title>\n<meta name=\"description\" content=\"Compound Interest Questions and Answers for Bank Exams 2024\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/entri.app\/blog\/compound-interest-questions-and-answers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Compound Interest Questions and Answers for Bank Exams 2024 - 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