IBPS SO Prelims Exam Model Paper 8

Given:
Total interest = Rs. 12096
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 = P × 25 ×

4

100

= Rs. P
Compound interest = P(1+

20

100

)3 – P = Rs. (0.728P)
⇒ P + 0.728P = 12096
⇒ P = 7000
∴ Simple Interest after 2 years = 7000 × 2 ×

22

100

= Rs. 3080