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IBPS PO Simple & Compound Interest Questions
Practise simple & compound interest (quantitative aptitude) for the IBPS Probationary Officer Examination: 10 multiple-choice questions, each with the correct answer and a worked explanation. Click an option to check it, or “New questions” for another set.
Simple & Compound Interest practice
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Q1.Find the compound interest on ₹23,000 at 10% per annum for 3 years, compounded annually.
Show answer & explanation
Answer: D — ₹7,613
A = P(1 + R/100)^T = 23,000 × 1.10^3 = 30,613; CI = A − P = ₹7,613.
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Q2.Find the simple interest on ₹6,000 at 6% per annum for 2 years.
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Answer: B — ₹720
SI = P × R × T / 100 = 6,000 × 6 × 2 / 100 = ₹720.
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Q3.Find the compound interest on ₹39,000 at 20% per annum for 3 years, compounded annually.
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Answer: C — ₹28,392
A = P(1 + R/100)^T = 39,000 × 1.20^3 = 67,392; CI = A − P = ₹28,392.
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Q4.Find the compound interest on ₹5,000 at 5% per annum for 3 years, compounded annually.
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Answer: C — ₹788.13
A = P(1 + R/100)^T = 5,000 × 1.05^3 = 5,788.13; CI = A − P = ₹788.13.
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Q5.Find the compound interest on ₹8,000 at 20% per annum for 2 years, compounded annually.
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Answer: B — ₹3,520
A = P(1 + R/100)^T = 8,000 × 1.20^2 = 11,520; CI = A − P = ₹3,520.
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Q6.Find the simple interest on ₹50,000 at 6% per annum for 2 years.
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Answer: D — ₹6,000
SI = P × R × T / 100 = 50,000 × 6 × 2 / 100 = ₹6,000.
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Q7.Find the simple interest on ₹59,000 at 4% per annum for 4 years.
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Answer: B — ₹9,440
SI = P × R × T / 100 = 59,000 × 4 × 4 / 100 = ₹9,440.
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Q8.Find the compound interest on ₹30,000 at 10% per annum for 2 years, compounded annually.
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Answer: D — ₹6,300
A = P(1 + R/100)^T = 30,000 × 1.10^2 = 36,300; CI = A − P = ₹6,300.
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Q9.Find the compound interest on ₹34,000 at 10% per annum for 3 years, compounded annually.
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Answer: C — ₹11,254
A = P(1 + R/100)^T = 34,000 × 1.10^3 = 45,254; CI = A − P = ₹11,254.
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Q10.Find the simple interest on ₹49,000 at 7.5% per annum for 4 years.
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Answer: C — ₹14,700
SI = P × R × T / 100 = 49,000 × 7.5 × 4 / 100 = ₹14,700.
How to approach simple & compound interest questions
Simple interest grows linearly (PRT/100); compound interest multiplies by (1 + r/100) each period. For 2 years, CI − SI = P(r/100)² — a common shortcut.
About IBPS PO
IBPS Probationary Officer Examination — conducted by Institute of Banking Personnel Selection (IBPS). Recruits Probationary Officers for participating public sector banks through prelims, mains and interview.
Original practice questions written for this site in the style and difficulty of each exam’s syllabus. They are not past papers and the site is not affiliated with any exam body. Exam patterns, marking schemes and syllabi change — always check the latest official notification.
IBPS PO practice topics
| Topic | Section | Question source |
|---|---|---|
| Data Interpretation | Data interpretation | Calculated (new numbers every set) |
| Percentages | Quantitative aptitude | Calculated (new numbers every set) |
| Simple & Compound Interest | Quantitative aptitude | Calculated (new numbers every set) |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |
| Verbal Reasoning & Analogies | Reasoning | Calculated + question bank |
| English Grammar | English | Question bank |
| Economy & Banking Awareness | General awareness | Question bank |