{"id":125163,"date":"2025-01-10T11:56:09","date_gmt":"2025-01-10T06:26:09","guid":{"rendered":"https:\/\/www.practicemock.com\/blog\/?p=125163"},"modified":"2025-11-20T15:03:05","modified_gmt":"2025-11-20T09:33:05","slug":"simple-and-compound-interest-most-important-questions-for-sbi-po-exam","status":"publish","type":"post","link":"https:\/\/www.practicemock.com\/blog\/simple-and-compound-interest-most-important-questions-for-sbi-po-exam\/","title":{"rendered":"Simple and Compound Interest Most Important Questions For SBI PO Exam"},"content":{"rendered":"\n<p><\/p>\n\n\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/www.practicemock.com\/blog\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/www.practicemock.com\/blog\/category\/sbi-po\/\">SBI PO<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\">Simple and Compound Interest Most Important Questions For SBI PO Exam<\/span><\/span><\/div>\n\n\n<p><\/p>\n\n\n\n<p><strong>Simple and Compound Interest For SBI PO Exam: <\/strong>The SBI PO exam is one of the most sought banking exams in India, and the Quantitative Aptitude section plays an important role in your success. Simple Interest (SI) and Compound Interest (CI) are among the key topics that every year appear in the exam. This article provides an overview of the SBI PO Simple interest and compound interest along with the free mock test and important questions and their detailed solution. Candidates can check all details about Simple and Compound interest in the article below.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-vivid-cyan-blue-background-color has-text-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/sbi-po-test-series\/?ref=12466\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Take SBI PO Free Mock Test &amp; Know your Preparation Level<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is Simple and Compound Interest <\/h3>\n\n\n\n<p><strong>Simple Interest<\/strong><\/p>\n\n\n\n<p>Simple Interest is calculated on the original principal amount for the entire duration of the loan or investment. The formula for calculating Simple Interest is:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"296\" height=\"122\" src=\"https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/image-4.png\" alt=\"\" class=\"wp-image-125175\" style=\"width:264px;height:109px\"\/><\/figure><\/div>\n\n\n<p>Where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>P<\/strong> = Principal (initial amount of money)<\/li>\n\n\n\n<li><strong>R<\/strong> = Rate of interest per annum<\/li>\n\n\n\n<li><strong>T<\/strong> = Time period (in years)<\/li>\n<\/ul>\n\n\n\n<p><strong>Compound Interest <\/strong><\/p>\n\n\n\n<p>Compound interest is calculated on the principal amount and the interest that accumulates over time. This means that the interest earned each period is added to the principal amount, and interest is calculated on this new amount.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"176\" src=\"https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/image-5.png\" alt=\"\" class=\"wp-image-125179\" style=\"width:246px;height:127px\"\/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Simple &amp; Compound Formula<\/h3>\n\n\n\n<p><strong>Compound interest:<\/strong><br>Interest = Amount \u2013 Principal<\/p>\n\n\n\n<p>If Rs. \u2018P\u2019 is invested at a rate of \u2018r%\u2019 p.a. compounded annually for \u2018t\u2019 years, then the amount received after \u2018t\u2019 years will be = P \u00d7 {1 + (r\/100)}<sup>t<\/sup><\/p>\n\n\n\n<p>If the interest is not compounded annually, then<\/p>\n\n\n\n<p>Effective rate of interest = Actual rate \u00f7 Number of times the interest is compounded in a year<\/p>\n\n\n\n<p>Effective time period = Actual time period \u00d7 Number of times the interest is compounded in a year<\/p>\n\n\n\n<p><strong>Simple interest:<\/strong><\/p>\n\n\n\n<p>If Rs. \u2018P\u2019 is invested at simple interest of \u2018r%\u2019 p.a. for \u2018t\u2019 years, then the amount received after \u2018t\u2019 years will be = P + {(P \u00d7 r \u00d7 t)\/100}<\/p>\n\n\n\n<p>And, the simple interest received = {(P \u00d7 r \u00d7 t)\/100}<\/p>\n\n\n\n<p>Relationship between simple interest (SI) and compound interest (CI):<\/p>\n\n\n\n<p>When a principal (P) is invested at the rate of \u2018r%\u2019 p.a., then<\/p>\n\n\n\n<p>Difference between SI and CI after two years = P \u00d7 (r\/100)<sup>2<\/sup>&nbsp;<\/p>\n\n\n\n<p>Difference between SI and CI after three years = P \u00d7 (r\/100)<sup>2<\/sup>&nbsp;\u00d7 {(r\/100) + 3}<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Simple and Compound Interest Important Question PDF Link <\/h2>\n\n\n\n<p><strong>Question 1:<\/strong>&nbsp;Find the difference between the compound interest and simple earned by a man, if he lent Rs. 64000 at the rate of 10% interest in both types of interest for 3 years.<\/p>\n\n\n\n<p>A) Rs. 2012<\/p>\n\n\n\n<p>B) Rs. 1632<\/p>\n\n\n\n<p>C) Rs. 1848<\/p>\n\n\n\n<p>D) Rs. 1984<\/p>\n\n\n\n<p>E) Rs. 1932<\/p>\n\n\n\n<p><strong>Question 2:<\/strong>&nbsp;The total amount earned by the man from a scheme which offers simple interest at the end of 4<sup>th<\/sup>&nbsp;year and 5<sup>th<\/sup>&nbsp;year is Rs. 7984 and Rs. 8108 respectively. Find the amount invested by him in the scheme.<\/p>\n\n\n\n<p>A) Rs. 7488<\/p>\n\n\n\n<p>B) Rs. 7546<\/p>\n\n\n\n<p>C) Rs. 7396<\/p>\n\n\n\n<p>D) Rs. 7244<\/p>\n\n\n\n<p>E) None of these<\/p>\n\n\n\n<p><strong>Question 3:<\/strong>&nbsp;Amir invested Rs. 18,000 in a scheme offering 20% compound interest for two years compounded annually. Find the interest earned by him.<\/p>\n\n\n\n<p>A) Rs. 7,820<\/p>\n\n\n\n<p>B) Rs. 7,920<\/p>\n\n\n\n<p>C) Rs. 8,020<\/p>\n\n\n\n<p>D) Rs. 8,120<\/p>\n\n\n\n<p>E) None of these<\/p>\n\n\n\n<p><strong>Question 4:<\/strong>&nbsp;Raman deposited Rs. 16000 at 20% per annum compound interest and Rs. 12000 at 30% simple interest per annum. What will be the difference in the interest after completion of 2 years?<\/p>\n\n\n\n<p>A) Rs. 180<\/p>\n\n\n\n<p>B) Rs. 160<\/p>\n\n\n\n<p>C) Rs. 120<\/p>\n\n\n\n<p>D) Rs. 140<\/p>\n\n\n\n<p>E) Rs. 150<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><a href=\"https:\/\/www.practicemock.com\/?next=https%3A%2F%2Fwww.practicemock.com%2Fpricing%2Fmarketing%2Ffiles%2Fpdf%2Fci-%26-si-important-ques.pdf&amp;ref=12466\" target=\"_blank\" rel=\"noreferrer noopener\">Simple and Compound Interest Important Question PDF Link <\/a><\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong><br>The information provided is intended solely for educational and informational purposes, offering practice questions and insights to aid exam preparation. While efforts have been made to ensure accuracy and relevance, the content may not fully reflect the actual examination and should be treated as a supplementary resource rather than a definitive guide. The publisher is not affiliated with <a href=\"https:\/\/sbi.co.in\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">SBI<\/a>, IBPS, or any official examination authority, and all trademarks and names mentioned are the property of their respective owners. Readers are advised to consult official notifications and resources for authoritative information, and the publisher shall not be held responsible for any decisions or outcomes based on the use of this content.<\/p>\n\n\n\n<p><br><\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-vivid-cyan-blue-background-color has-text-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/?next=https%3A%2F%2Fs1.practicemock.com%2Fpricing%2Findex.php%3Fc%3Dpremium&amp;ref=12466\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Sign Up To Get The Best Banking Preparation Courses <\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Related Articles On SBI PO 2025 Exam<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><a href=\"https:\/\/www.practicemock.com\/blog\/sbi-po-exam-pattern\/\" target=\"_blank\" rel=\"noreferrer noopener\">SBI PO Exam Pattern 2025<\/a><\/td><td><a href=\"https:\/\/www.practicemock.com\/blog\/sbi-po-previous-year-question-paper-solution-pdf\/\" target=\"_blank\" rel=\"noreferrer noopener\">SBI PO Previous Year Question Paper<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/www.practicemock.com\/blog\/sbi-po-salary\/\" target=\"_blank\" rel=\"noreferrer noopener\">SBI PO Salary 2025<\/a><\/td><td><a href=\"https:\/\/www.practicemock.com\/blog\/sbi-po-syllabus\/\" target=\"_blank\" rel=\"noreferrer noopener\">SBI PO Syllabus 2025<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/www.practicemock.com\/blog\/sbi-po-cut-off\/\" target=\"_blank\" rel=\"noreferrer noopener\">SBI PO Cut Off 2025<\/a><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Simple and Compound Interest For SBI PO Exam FAQ<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1736417448193\"><strong class=\"schema-faq-question\">What is Simple Interest (SI)?<\/strong> <p class=\"schema-faq-answer\">Simple Interest is the interest calculated on the principal amount only.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1736423174032\"><strong class=\"schema-faq-question\">What is Compound Interest (CI)?<\/strong> <p class=\"schema-faq-answer\">Compound Interest is the interest calculated on the principal and also on the accumulated interest of previous periods.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1736423198260\"><strong class=\"schema-faq-question\">Where can I download Simple and Compound Interest Important Questions?<\/strong> <p class=\"schema-faq-answer\">Candidates can download the Simple and Compound Interest Important Questions in this article.<\/p> <\/div> <\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here we are providing the Simple and Compound Interest Most Important Questions For SBI PO Exam along with detailed solutions.<\/p>\n","protected":false},"author":13,"featured_media":187256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[49],"tags":[],"class_list":["post-125163","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sbi-po"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Simple and Compound Interest Most Important Questions For SBI PO 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I cleared many bank exams time by time but couldn't join because of my passion towards writing. I write blogs to help aspirants prepare for Banking and Insurance exams. These blogs turn out to be a one-stop destination for comprehensive information on some of the biggest competitive exams like SBI PO\/Clerk, IBPS PO\/Clerk, IBPS RRB PO\/Clerk and RBI. My ultimate goal is to provide accurate and easy-to-understand information, covering topics like exam patterns, syllabus, study techniques, and more. Join me on this journey of knowledge!","url":"https:\/\/www.practicemock.com\/blog\/author\/ss8860409gmail-com\/"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/simple-and-compound-interest-most-important-questions-for-sbi-po-exam\/#faq-question-1736417448193","position":1,"url":"https:\/\/www.practicemock.com\/blog\/simple-and-compound-interest-most-important-questions-for-sbi-po-exam\/#faq-question-1736417448193","name":"What is Simple Interest (SI)?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Simple Interest is the interest calculated on the principal amount only.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/simple-and-compound-interest-most-important-questions-for-sbi-po-exam\/#faq-question-1736423174032","position":2,"url":"https:\/\/www.practicemock.com\/blog\/simple-and-compound-interest-most-important-questions-for-sbi-po-exam\/#faq-question-1736423174032","name":"What is Compound Interest (CI)?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Compound Interest is the interest calculated on the principal and also on the accumulated interest of previous periods.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/simple-and-compound-interest-most-important-questions-for-sbi-po-exam\/#faq-question-1736423198260","position":3,"url":"https:\/\/www.practicemock.com\/blog\/simple-and-compound-interest-most-important-questions-for-sbi-po-exam\/#faq-question-1736423198260","name":"Where can I download Simple and Compound Interest Important Questions?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Candidates can download the Simple and Compound Interest Important Questions in this article.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"uagb_featured_image_src":{"full":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/Simple-and-Compound-Interest-Most-Important-Questions-For-SBI-PO-Exam.png",1200,675,false],"thumbnail":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/Simple-and-Compound-Interest-Most-Important-Questions-For-SBI-PO-Exam.png",150,84,false],"medium":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/Simple-and-Compound-Interest-Most-Important-Questions-For-SBI-PO-Exam.png",300,169,false],"medium_large":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/Simple-and-Compound-Interest-Most-Important-Questions-For-SBI-PO-Exam.png",640,360,false],"large":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/Simple-and-Compound-Interest-Most-Important-Questions-For-SBI-PO-Exam.png",640,360,false],"1536x1536":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/Simple-and-Compound-Interest-Most-Important-Questions-For-SBI-PO-Exam.png",1200,675,false],"2048x2048":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/Simple-and-Compound-Interest-Most-Important-Questions-For-SBI-PO-Exam.png",1200,675,false],"web-stories-poster-portrait":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/Simple-and-Compound-Interest-Most-Important-Questions-For-SBI-PO-Exam.png",640,360,false],"web-stories-publisher-logo":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/Simple-and-Compound-Interest-Most-Important-Questions-For-SBI-PO-Exam.png",96,54,false],"web-stories-thumbnail":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/01\/Simple-and-Compound-Interest-Most-Important-Questions-For-SBI-PO-Exam.png",150,84,false]},"uagb_author_info":{"display_name":"Sweta Singh","author_link":"https:\/\/www.practicemock.com\/blog\/author\/ss8860409gmail-com\/"},"uagb_comment_info":3,"uagb_excerpt":"Here we are providing the Simple and Compound Interest Most Important Questions For SBI PO Exam along with detailed solutions.","_links":{"self":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts\/125163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/comments?post=125163"}],"version-history":[{"count":0,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts\/125163\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/media\/187256"}],"wp:attachment":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/media?parent=125163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/categories?post=125163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/tags?post=125163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}