IBPS SO Exam 2017 - Day 8 (Simple Interest/ Compound Interest)

Dear Aspirants,

We have introduced  "the 12 days study plan to crack IBPS SO Exam 2017". This plan is specifically dedicated to Quantitative Aptitude & English Language and cover all types of questions asked in Bank SO exams. This will help you to prepare in a more efficient and systematic way. So, follow this post to keep updated with the plan.

Q1. A sum is invested for 3 years at a certain rate of interest compounded annually. After 3 years the amount increases by 119.7%. What is the rate of interest?
(a) 20%
(b) 10%
(c) 15%
(d) 30%
(e) 40%

Q2. A sum of money doubles itself in 10 years at simple interest. In how many years would it become 5 times of itself?
(a) 30
(b) 45
(c) 40
(d) 50
(e) 65

Q3. A man buys land and pays 20 times its annual rent. What is the rate %?
(a) 6%
(b) 5%
(c) 10%
(d) 8%
(e) 7%

Q4. A father left a will of Rs. 68,000 to be divided between his two sons aged 10 years and 12 years such that they may get equal amount when each attains the age of 18 years. If the money is reckoned at 10% p.a. then find how much each gets at the time of the will.
(a) Rs. 30,000, Rs. 38,000
(b) Rs. 28,000, Rs. 40,000
(c) Rs. 32,000, Rs. 36,000
(d) Cannot be determined
(e) None of these

Q5. Find the minimum number of complete years such that, the interest on Rs. 106.25 at 3% per annum will be in-exact number of rupees?
(a) 8
(b) 16
(c) 9
(d) 12
(e) None of these

Q6. A milk man borrowed Rs. 3,500 from two money lenders. For one loan, he paid 5% p.a. and for the other, he paid 10% p.a. The total interest paid for two years was Rs. 500. How much did he borrow at 10% rate?
(a) Rs. 2000
(b) Rs. 1500
(c) Rs. 1650
(d) Rs. 1675
(e) None of these

Q7. A sum is invested for 4 years at a certain rate of interest compounded annually. After 4 years the amount increases by by 107.36%. What is the rate of interest?
(a) 20%
(b) 10%
(c) 15%
(d) 30%
(e) 40%

Q8. A person borrows Rs. 5000 for 99 years at 4% p.a. simple interest. He immediately lends it to another person at % p.a. for 99 years. Find his gain in the transaction per year.
(a) Rs. 112.50
(b) Rs. 125
(c) Rs. 150
(d) Rs. 167.50
(e) None of these

Q9. Two equal sums of money were invested, one at 4% and the other at 4.1%. At the end of 99 years, the simple interest received from the latter exceeded to that received from the former by Rs. 198. Each sum was:
(a) Rs. 1800
(b) Rs. 1600
(c) Rs. 1750
(d) Rs. 2000
(e) None of these
                                                                                                                                                                                         
Q10. Ram borrowed some money at the rate of 6% p.a. for the first three years, 9% p.a. for the next five years and 13% p.a. for the period beyond eight years. If the total interest paid by him at the end of eleven years is Rs. 81600, how much money did he borrow?
(a) Rs. 80000
(b) Rs. 100000
(c) Rs. 120000
(d) Data inadequate
(e) None of these

Q11. The difference between the simple interest received from two different sources on Rs. 1500 for 3 years is Rs. 1.350. The difference between their rates of interest is:
(a) 0.01%
(b) 0.02%
(c) 0.03%
(d) 0.3%
(e) None of these

Q12. Ram bought a Car for Rs. 481593 he will pay the amount in three annual installments in three years and the ratio of installments is 1:2:3, where the largest installment is at the end of third year. Also, he settled the complete amount at the end of 3rd year at the rate of 10% compound interest compounded annually then find the value of first installment.
(a) Rs. 100000
(b) Rs. 90000
(c) Rs. 110000
(d) Rs. 95000
(e) None of these

Q13. The difference between compound interest and simple interest on a sum for 2 years, when the interest is compounded annually is Rs. 4 and SI for 2 years is Rs. 40. Find rate?
(a) 15%
(b) 10%
(c) 25%
(d) 20%
(e) None of these

Q14. At what rate percent compound interest does a sum of money becomes Nine-fold in 2 years.
(a) 150%
(b) 100%
(c) 200%
(d) 400%
(e) None of these

Q15. Find the effective compound interest for 20% and 2 years, where compound interest is compounded semi-annually?
(a) 40%
(b) 41%
(c) 46.41%
(d) 44%
(e) None of these


ANSWERS :














S12. Ans.(a)
Sol. Given that there are three annual installments beginning at the end of one year after the car is bought and the amount will be settled by the end of 3 years. Also, the concept applied will be as followed. Worth of 481593 Rs. after 3 years, will be equated to worth of all installments at this points of time i.e. at the end of 3 years.
According to given informatION, we get,





S15. Ans.(c)
Sol. In effective compound interest, time period and compounding frequency is always 1 as it is that rate which gives you same income when nominal rate of interest is invested for certain time at any compounding frequency

Important Note:

To receive the fastest updates on Bank Exams like IBPS, SBI, RBI, IPPB, etc. as well as all other ongoing as well as forthcoming exams, kindly subscribe to our website. All you have to do is enter your email in the pop-up that appears on the website when you first enter it on the home page. Once you’re subscribed, you will receive all the latest updates concerning all competitive exams.

For more Updates & Notifications for bank exams like SBI PO, SBI CLERK, IBPS PO, IBPS RRB, IBPS CLERK, IBPS SO, NIACL, SSC CHSL, SSC CGL etc. like our facebook page at :