Simple Interest and Compound Interest are two of the topics that are quite common in the IBPS RRB PO exam as well as IBPS RRB office assistant exam. After all, when you would be working in bank, it is expected that you should at least some knowledge about how to calculate interest! Well, putting that aside, let us focus on how to solve IBPS RRB interest questions. Solving interest questions are relatively easy. So, anybody with a decent level of mathematical skills would be able to solve them. But, solving them is not enough. You need to solve them quickly. This is where you need to learn some effective techniques. Here, we would be taking a look at IBPS RRB Interest Questions and see how you can score top marks from the exam.
Understanding IBPS RRB Interest Questions
Before we learn the tricks of solving IBPS RRB interest questions, let us first understand a few things about interest questions in the IBPS RRB exam. As we know, there are two main types of interests – one is simple interest and the other is compound interest. In IBPS RRB, questions come on both the types. So, you should be preparing for both of these types, if you are serious about cracking IBPS RRB 2021.
Let us look at some more facts on IBPS RRB Interest Questions
Average Number of Questions: On an average about 3 to 5 questions come in the exam from interest. However, in the past few years, the number of questions have increased. In IBPS RRB 2018, you can at least expect 4-5 questions from this section.
The Difficulty of Questions: The difficulty of the questions varies from easy to moderate. However, there are instances where tough questions were asked on the topic.
How Much Practice Do You Need: Well, interest questions are a little bit complicated. As a result, they need more practice than other types of questions. You should practice atleast 5-10 questions daily to ensure that you are solving them with speed and accuracy.
So, these were some of the facts that you should know before you start to preprare for IBPS RRB Interest questions. Now, let us look at some of the tricks that you should know to solve such questions in the RRB PO and Office Assistant exam.
Solving IBPS RRB Interest Questions
Given below are some of the main types of questions asked in IBPS RRB exam. Let’s look at the technique you can use to solve them in an effective and quick manner.
Let us start with a simple example
Question: What principle will amount to 160000 in 6 years at 10% interest
Solution: We know that Total Amount = Principal+ Interest = Principal + (PRT/100)
Putting that formula here we get
16000= p +(p*10*6/100), where p is the principal
or P = 10000 rupees
Answer: Rs. 10000
Let us take a look at a more complicated example, where we would be using a somewhat different formula.
Question: A sum of Rs. 7700 is lent out in two parts. The interest of one part, lent out at 20% for 5 years is equal to the other part which is lent out at 9% at 6 years. Find the two sums
Solution: To solve these kind of questions, we are going to need to use the following formula:
If a principal is lent out in parts at r1%, r2% and so on and the time is t1, t2 and so on. Then their ratio is given by the formula
1/r1*t1:1/r2*t2 and so on.
So using this formula here, we get
r1=20%, r2=9%; t1=5 years and t2=6 years
Therefore, the first part is =27/(27+50)*7700=2700
The second part is =50/(27+50)*7700=5000
Answer: 2700 and 5000
Question 1: A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:
A. Rs. 650
B. Rs. 690
C. Rs. 698
D. Rs. 700
Correct Answer: C
A bank offers 5% compound interest calculated on a half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:
A. Rs. 120
B. Rs. 121
C. Rs. 122
D. Rs. 123
Correct Answer: B
There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
A. Rs. 2160
B. Rs. 3120
C. Rs. 3972
D. Rs. 6240
Correct Answer: C
So, these were some of the things that you can try out to solve IBPS RRB interest questions. For such interesting articles on IBPS RRB 2021 preparation, keep browsing our website.
Best of luck!