{"id":66895,"date":"2023-11-06T12:52:34","date_gmt":"2023-11-06T07:22:34","guid":{"rendered":"https:\/\/www.practicemock.com\/blog\/?p=66895"},"modified":"2025-04-14T19:41:56","modified_gmt":"2025-04-14T14:11:56","slug":"simple-interest-compound-interest-free-practice-questions-with-detailed-solutions","status":"publish","type":"post","link":"https:\/\/www.practicemock.com\/blog\/simple-interest-compound-interest-free-practice-questions-with-detailed-solutions\/","title":{"rendered":"Simple Interest Compound Interest Questions"},"content":{"rendered":"\n

In almost every banking exam there are multiple questions asked from the topic simple interest and compound interest. This topic has always been an important concept asked in the banking examination and thus its understanding is very important in order to perform such questions in the upcoming RBI Assistant prelims exam<\/a>. In this blog we will be discussing a few Simple Interest Compound Interest Free Practice Questions with Detailed Solutions. Understand the concept and practice these questions below:<\/p>\n\n\n\n

Compound interest and Simple interest:<\/strong><\/h3>\n\n\n\n

Compound interest:<\/strong>
Interest = Amount \u2013 Principal<\/p>\n\n\n\n

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)}t<\/sup><\/p>\n\n\n\n

If the interest is not compounded annually, then<\/p>\n\n\n\n

Effective rate of interest = Actual rate \u00f7 Number of times the interest is compounded in a year<\/p>\n\n\n\n

Effective time period = Actual time period \u00d7 Number of times the interest is compounded in a year<\/p>\n\n\n\n

RBI Assistant Prelims 2023 Free Mock Test<\/a><\/p>\n\n\n\n

Simple interest:<\/strong><\/p>\n\n\n\n

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

And, the simple interest received = {(P \u00d7 r \u00d7 t)\/100}<\/p>\n\n\n\n

Relationship between simple interest (SI) and compound interest (CI):<\/p>\n\n\n\n

When a principal (P) is invested at the rate of \u2018r%\u2019 p.a., then<\/p>\n\n\n\n

Difference between SI and CI after two years = P \u00d7 (r\/100)2<\/sup> <\/p>\n\n\n\n

Difference between SI and CI after three years = P \u00d7 (r\/100)2<\/sup> \u00d7 {(r\/100) + 3}<\/p>\n\n\n\n

RBI Assistant Prelims 2023 Free Mock Test<\/a><\/p>\n\n\n\n

This brings us to the end of the article. Make sure that you practice these simple and compound interest questions with detailed solutions and prepare well for the upcoming RBI Assistant exam. <\/p>\n","protected":false},"excerpt":{"rendered":"

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