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Simple Interest and Compound Interest Video Tricks Formulas for IBPS SBI Bank PO/ Clerk, RBI, RRB

Simple and Compound Interest Calculations - Quantitative Aptitude Video lecture in Hindi. It covers the IBPS and SBI Bank PO / Clerk Examinations. This is a Completely free study material especially designed for students preparing for IBPS SBI Bank PO / Clerk Examinations. Title : Simple and Compound Interest for IBPS Bank PO/ Clerk (Hindi Video) Study Material Chapter Name : Simple and Compound Interest Calculations Subject : Quantitative Aptitude (Numerical Ability) Exams : SBI PO, IBPS PO, SBI Clerk, IBPS Clerk, IBPS RRB, RBI, LIC AAO etc. Language: Hindi (Terms in English) Format : Video Lectures Topic Covered : 1. What is Simple and Compound Interest and Some Basic Problems on SI and CI 2. Problems on difference between Simple and Compound Interest 3. Some Problem Types that are asked in Exams 4. Problems based on half-yearly, Quarterly, Biennially Time Periods 5. Some Miscellaneous Problems - 1 6. Some Miscellaneous Problems - 2 Keywords: simple interest and compound interest basic formulas, simple and compound interest for bank exam, simple and compound interest for bank po, simple and compound interest questions SIMPLE INTEREST IMPORTANT POINTS 'Interest' is the money paid by a borrower to the lender for the use of money borrowed. The money borrowed or lent out for a certain period is called the 'Principal' or 'the sum'. The sum of Interest and Principal is called the Amount. Thus Amount = Principal + Interest The duration of period for which the money is borrowed is called the Time. The interest is charged according to some pre condition which is expressed in general as a rate per cent of the principal for each year and is called 'rate percent per annum'. Thus if the rate of interest is 5% per annum, it means that the interest on principal of Rs.100 for one year is Rs. 5. Here 'per annum' means 'for a year'. If throughout the loan period, the interest is charged on the original sum (Principal) borrowed, it is called Simple Interest. Some abbreviations to be used fre- quently : P = Principal R = Rate of interest T = Time S.I. = Simple interest A = Amount Formulae : If P is the Principal, R is the rate per cent per annum, T is the time in years and S.I. is the simple interest, then(i)(ii) (iii) (iv) (v) A = P + I = P + ⇒ 100A = 100 × P + PRT ⇒ 100 × A = P ( 100 + RT ) (vi) The annual payment that will discharge a debt of Rs. x due in T years at the rate of interest R% per annum is (vii) If a sum of money becomes x times in T years at SI, the rate of interest is given by %. (viii) A sum of Rs. x is lent out in parts in such a way that the interest on 1st part at R1% for T1 years, the interest on second part at R2% for T2 years and so on, are equal, the ratio in which the sum was divided in parts is given by (ix) When different sums mature to the same amount at simple rate of interest, the ratio of the sums invested are in the inverse ratio of (100 + time x rate), i.e., the ratio in which the sums are invested is 1 Ordinary year = 365 days. 1 Leap year = 366 days. The number of days in February of leap year is 29. If the rate per cent is given half-yearly or quarterly then to fmd the rate per cent per annum multiply by 2 or 4 respectively. In counting the number of days between the two given dates, the ei- ther day (first or last) is excluded. You have to keep in mind that interest is not charged for the day on which money is borrowed but it is charged for the day it is returned. Let us consider the following questions asked in previous exams. Rs. 800 becomes Rs. 956 in 3 years at certain simple rate of interest. If the rate of interest is increased by 4%, what amount will Rs. 800 become in 3 years? (1) Rs. 1020.8 (2) Rs. 1025 (3) Rs. 1052 (4) Data inadequate (5) None of these Solution : (3) Increase is interest in 3 years due to increase in rate by 4%Total amount at the end of 3 years = Rs. 956 + Rs. 96 = Rs. 1052 An amount doubles itself in 5 years with simple interest. What is the rate of interest p.c.p.a. ? (1) 20 (2) 35 (3) 25 (4) Cannot be determined (5) None of these Solution : (1) Let the principal be Rs. x. ∴Amount = Rs. 2x ∴Interest = Rs. x Let the rate of interest be r %. Ravi borrowed some money at the rate of 4 p.c.p.a. for the first three years, at the rate of 8 p.c.p.a. for the next two years and at the rate of 9 p.c.p.a. for the period byond 5 years. If he pays a total simple interest of Rs.19,550 at the end of 7 years, how much money did he borrow? (1) Rs. 39,500 (2) Rs. 42,500 (3) Rs. 41,900 (4) Rs. 43.000 Solution : (2) Biswas borrowed:l a sum of Rs. 30,000. He took a part of it at 12% per annum :ate of simple interest and the rerraming at 10% per annum. At the end of two years, he returned Rs. 36480 and discharged his loan. What was the sum borrowed at 12% per annum rate of interest ? (1) Rs. 16000 (2) Rs. 18000 (3) Rs. 17500 (4) Rs. 12000 (5) None of these Solution : (4) Let the sum borrowed at 12% be Rs. x. ∴ Sum borrowed at 10% = Rs. (30000 - x ) According to the…