IBPS SO Prelims Exam Model Paper 9

Given:
Rs. 4000 invested at SI for 3 years
CI – SI = Rs. 455
Amount on SI after 3 years = Rs. 5200
Formula used:
Let P = principal, R = rate of interest and N = time
Simple Interest =

PNR

100

Compound interest = P(1+

R

100

)n – P
Calculation:
Simple Interest = 5200 – 4000 = Rs. 1200
⇒ 1200 = 4000 × R ×

3

100

⇒ R = 10%
Compound interest = 455 + 1200 = Rs. 1655
⇒ 1655 = P(1+

10

100

)3 – P
⇒ P = 5000
∴ Amount invested on compound interest is Rs. 5000