IBPS SO Prelims Exam Model Paper 1

Given:
Simple interest(S.I) = Rs. 600, Rate(R%) = 10% p.a.
Time(T) = 3 years
Formula used:
SI = P × R ×

T

100

Amount(A) = P(1 +

R

100

)T
C.I = A - P
Calculation:
Let the principal be P.
SI = P × R ×

T

100

600 = 3 × 10 ×

P

100

P = 2000
Now, compound interest after 3 years will be,
⇒ CI = P[(1+

R

100

)n - 1] = 2000[(1 +

20

100

)3 - 1]
⇒ 2000 ×(

91

125

) = Rs. 1456
∴ The compound interest is Rs. 1456.