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SSC Exam Quantitative Aptitude Study Material: A conceptual guide for Simple Interest and compound

SSC is well known for the recruitment of Group ‘B’ and ‘C’ posts under the Ministries/Departments in The Government of India. SSC organizes various examinations like Combined Graduate Level examination, Combine Higher Secondary Level, Stenographer and for SI/DP/CAPF, etc.

Jul 1, 2016 10:43 IST
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SSC is well known for the recruitment of Group ‘B’ and ‘C’ posts under the Ministries/Departments in The Government of India. SSC organizes various examinations like Combined Graduate Level examination, Combine Higher Secondary Level, Stenographer and for SI/DP/CAPF, etc., throughout the year having almost the same Exam Pattern. The Exam paper is comprised of basically 4 subjects.

a. General Intelligence & Reasoning
b. English language & Comprehension
c. Quantitative Aptitude
d. General knowledge

For more detail, click the link given below.

SSC SI, CAPF & ASI Exam 2015: Exam Pattern

 

https://www.jagranjosh.com/articles/ssc-si-capf-asi-exam-2015-exam-pattern-1427805314-1

SSC Combined Higher Secondary Level (10+2) Exam 2014: Exam Pattern

 

https://www.jagranjosh.com/articles/ssc-combined-higher-secondary-level-102-exam-2014-exam-pattern-1405771700-1

SSC JHT & Hindi Pradhyapak and Sr. / Jr. Translators Exam 2014: Exam Scheme & Syllabus

 

https://www.jagranjosh.com/articles/ssc-jht-hindi-pradhyapak-and-sr-jr-translators-exam-2014-exam-scheme-syllabus-1395664250-1

SSC Stenographer 2016: Take a look of Exam Pattern, Syllabus and Selection Procedure

https://www.jagranjosh.com/articles/ssc-stenographer-2016-take-a-look-of-exam-pattern-syllabus-and-selection-procedure-1464352983-1

So, Jagranjosh.com has introduced a brief plan for revising topics at the time of examination. In this article, SI & CI,  which sometimes appear more difficult to understand in terms of  calculating levied time.

Simple Interest and Compound Interest

If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called Simple Interest (S.I.)

Important Points and Formulae:

Compound Interest

Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit. Compound interest can be thought of as “interest on interest,” and will make a deposit grow at a faster rate than simple interest. Interest can be compounded annually, half yearly, quarterly or with any other period.

Examples:

Example 1: What will be the simple interest on Rs. 50,000 at 10% per annum for 5 years?

Therefore, the simple interest on Rs. 50,000 at 10% per annum for 5 years will be Rs. 25,000.

Example 2:  What will be the Compound Interest on Rs. 10000 at 10 % per annum for 3 years, compounded annually?  

Questions from Previous Year Papers:

Example 3: What is the difference between the simple and compound interest on Rs. 7,300/- at the rate of 6 p.c.p.a. in 2 years?

(1) Rs. 29.37

(2) Rs. 26.28   

(3) Rs. 31.41   

(4) Rs. 23.22   

(5) Rs. 21.34


Ans: (2)

2. The simple interest accrued on an amount of Rs. 22,500 at the end of four years is Rs. 10,800. What would be the compound interest accrued on the same amount at the same rate of interest at the end of two years?

(1) 16,908

(2) 5,724

(3) 28,224

(4) 8,586

(5) None of these

Ans: (2)

3. The simple interest accrued on a sum of a certain principal is Rs. 35,6727 in seven years at the rate of 8 pcpa. What would be the compound interest accrued on that principal at the rate of 2 pcpa in 2 years?

(A) Rs. 2573.48

(B) Rs. 2564.86

(C) Rs. 2753.86

(D) Rs. 2654.48

(E) None of these

Ans: (1)

4. What will be the simple interest on Rs. 78,000 at 10% per annum for 9 years?

Therefore, the simple interest on Rs. 78,000 at 10% per annum for 9 years will be Rs. 70, 200

5. What will be the simple interest earned on an amount of Rs. 18,000 in 6 months at the rate of 25% p.a.?

(a) Rs. 2250.50

(b) Rs. 2350.50

(c) Rs. 2,250

(d) Rs. 2,400

(a) Rs. 20

(b) Rs.20.5

(c) Rs. 22

(d) Rs.25

NOTE: The day on which money is withdrawn is counted while the day on which money is deposited is not counted.

7. A sum of Rs. 600 amounts to Rs. 900 in 5 years at simple interest. What would be the amount if the interest rate is increased by 5%?

(a) Rs.1, 000

(b) Rs 1,230

(c) Rs.1, 050

(d) Rs.1, 125

Solution : According to the given situation a sum of Rs. 600 amounts to Rs. 950 in 5 years, then

             S.I. = Rs. 900 – Rs.600 = Rs.300

             P = Rs. 600,  T = 5 Years 

8. What will be the compound interest on a sum of Rs 8000 at the rate of 15% per annum after 2 years?

(a) Rs.2400

(b) Rs.2450

(c) Rs.2580

(d)Rs.2650

9. What is the difference between the compound interests on Rs. 10000 for 2 years at 4%pe annum yearly and half yearly?

(a) Rs.8

(b) Rs.8.49

(c) Rs.7

(d) Rs. 10

10. A sum of money tripled itself at compound interest in 10 years. In how many years will it become 27 times.

(a) 35 years

(b) 31 years

(c) 30 years

(d) 32 years

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