Simple Interest Question for IBPS PO 2025, Know Tips to Solve

Having a good grasp on basic quantitative aptitude topics is a must for IBPS PO 2025 exam preparation, and Simple Interest (SI) is one such scoring area. Mastering simple interest questions is extremely important to score good marks, as these are relatively simple and can be solved quickly with the right approach. It is often included along with other arithmetic concepts in both prelims and mains exams. Understanding the logic behind simple interest & compound Interest and providing a master plan to solve questions easily.

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What is Simple Interest?

Simple Interest

Simple interest is a fundamental concept in banking and finance that involves the additional amount paid on the principal at a fixed rate of interest after a specified period.

In IBPS PO, simple interest questions test your understanding of basic arithmetical operations and your ability to use formulas for fast and accurate calculations.

Basic Terms Related to Simple Interest

Let’s understand the important terms used in Simple Interest problems:

• Principal (P): The original amount of money invested or loaned.
• Rate of Interest (R): The percentage of interest charged per annum.
• Time (T): The duration for which the money is borrowed or invested.
• Simple Interest (SI): The amount of interest earned or paid over time.
• Amount (A): Total money after interest is added, i.e., Principal + Interest.

Formula for Simple Interest

The standard formula to calculate Simple Interest is:

SI = (P × R × T) / 100

Where:

• SI = Simple Interest
• P = Principal
• R = Rate of Interest per annum
• T = Time in years

Amount (A) = Principal + Simple Interest

Study Resources Based On the Latest Pattern

Simple Interest Most asked questions for IBPS PO 2025 Exam

Question 1: The difference between compound interest (compounded semi annually) and simple interest earned on a certain sum of money after 2 years will be Rs. 1,282. If rate of interest is 20% p.a., then find that sum.

A) Rs. 20,000

B) Rs. 15,000

C) Rs. 22,500

D) Rs. 17,500

E) None of these

Question 2: Rs. ‘x’ when invested at 30% p.a. compound interest, compounded annually amounts to Rs. 8450 in two years. Find the amount received when Rs. (x + 1400) will be invested at 15% p.a. simple interest for 8 years.

A) Rs. 14240

B) Rs. 13080

C) Rs. 14080

D) Rs. 13640

E) None of these

Question 3: The simple interest received on investing Rs. 13,800 at simple interest of ‘y%’ p.a. for 5 years is Rs. 7,590. Find the compound interest received on investing Rs. 6,800 for 2 years at compounded interest of (y – 1)% p.a., compounded annually.

A) Rs. 1,356

B) Rs. 1,296

C) Rs. 1,564

D) Rs. 1,428

E) Rs. 1,480

Question 4: The difference between simple interest and compound interest (compounded annually) on a certain sum for 3 years is Rs.1,920. Find the sum if the rate of interest is 20% p.a.

A) Rs. 18,440

B) Rs. 13,000

C) Rs. 17,960

D) Rs. 21,650

E) Rs. 15,000

Question 5: Amit, Bittu and Dhiraj started a business together by investing Rs. 20000, Rs. 25000 and Rs. 40000, respectively. The annual profit received by Dhiraj out of total annual profit of Rs. 10200 is deposited at simple interest of 6% p.a. for 3 years. Find the amount received by Dheeraj after three years.

A) Rs. 5546

B) Rs. 5446

C) Rs. 5564

D) Rs. 5664

E) Rs. 5646

Simple Interest Important Questions PDF Link with Detailed Solution

Tips to Solve Simple Interest Questions Efficiently

To excel in Simple Interest questions for IBPS PO 2025, follow these practical tips:

1. Memorise the Formula and Its Variations

The Simple Interest formula (SI = P × R × T / 100) is an important part of all questions. Additionally, know how to rearrange the formula to find P, R, or T:

• Principal (P): P = (SI × 100) / (R × T)
• Rate (R): R = (SI × 100) / (P × T)
• Time (T): T = (SI × 100) / (P × R)

Practice these variations to quickly identify which formula to use based on the given data.

2. Simplify Calculations

Many Simple Interest questions involve large numbers or decimals. Use mental math techniques or approximation to simplify calculations:

• Break down large numbers: For example, (15,000 × 6 × 2) / 100 can be simplified as 15,000 × 12 / 100 = 15,000 × 0.12 = 1,800.
• Use fractions for rates: A rate of 5% can be written as 1/20, which simplifies multiplication.

3. Pay Attention to Units

The time period (T) is typically given in years, but questions may involve months or days. Convert these to years:

• 6 months = 0.5 years
• 90 days = 90/365 years (or approximately 0.25 years for simplicity)

Similarly, ensure the rate of interest is per annum unless specified otherwise.

4. Practice Common Patterns

Certain question patterns are repeated in IBPS PO exams. For example:

• Questions where the principal doubles or triples in a certain time.
• Questions comparing two investments with different principals, rates, or periods.

Practice these patterns to recognise them quickly during the exam.

5. Use Shortcuts for Comparison Questions

For questions comparing Simple Interest from two investments, use the ratio method to avoid calculating SI separately:

Example: Compare SI for ₹10,000 at 5% for 2 years vs. ₹8,000 at 6% for 3 years.

Instead of calculating SI, compare P × R × T:

• First investment: 10,000 × 5 × 2 = 100,000
• Second investment: 8,000 × 6 × 3 = 144,000

Since 144,000 > 100,000, the second investment yields more interest.

6. Master Data Interpretation

For DI-based questions, practice extracting relevant data quickly. Focus on identifying P, R, and T from tables or charts and applying the SI formula. Use a calculator (if allowed in practice) to save time.

7. Time Management

Simple Interest questions are generally less time-consuming, so aim to solve them in under 1 minute. If a question seems complex, mark it for review and move on to ensure you cover the entire section.

8. Practice with Mock Tests

Regularly attempt mock tests and previous years’ IBPS PO papers to familiarise yourself with question formats and improve speed. Analyse your performance to identify weak areas.

9. Understand Related Concepts

Simple Interest questions may be combined with topics like:

• Compound Interest: Understand the difference between SI and CI for the same principal and time.
• Profit and Loss: Some questions may frame SI as a profit earned on an investment.
• Percentage: Many SI calculations involve percentages, so brush up on percentage shortcuts.

Conclusion

Simple Interest is one of the most approachable and scoring topics in the IBPS PO 2025 exam. A good grip over SI concepts not only improves your overall quant score but also helps you tackle time-based arithmetic problems efficiently. Practice regularly, review the basics, and maintain consistency with your mock tests.

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