Bank Exam Practice Material Series Page 12 | Compound Interest Practice Set with Answers & Shortcut Tricks

 

 Bank Exam Practice Material Series – Page 12

Compound Interest Practice Set with Answers & Shortcut Tricks

Shaktimatha Learning – Bank Exam Practice Hub
Learn Compound Interest shortcut tricks, percentage growth methods, annual compounding concepts, and fast aptitude solving techniques for Bank Exams, SSC, Railways, Insurance, and Competitive Exams.

 Importance of Compound Interest in Bank Exams

Compound Interest is one of the most important arithmetic topics in:

• Bank Exams
• SSC
• Railway Exams
• Insurance Exams

This section tests:

• Financial mathematics
• Percentage application
• Formula usage
• Logical calculations

🎯 Important Compound Interest Concepts

Questions are mainly based on:

• Principal amount
• Rate of interest
• Compound amount
• Difference between SI & CI
• Annual compounding
• Growth calculations

 Compound Interest Formula

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 Compound Interest Formula

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 Shortcut Tricks

Concept	Shortcut
CI	Amount − Principal
10% increase	Multiply by 1.10
20% increase	Multiply by 1.20
Two years CI	Use square method
Growth	Multiply yearly

 Practice Questions

Q1. Find amount on ₹1000 at 10% for 2 years compounded annually.

Solution:

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1000 × 1.1 × 1.1

✅ Answer = ₹1210

Q2. Find CI if Principal = ₹2000 and Amount = ₹2420.

Solution:

2420 − 2000

✅ Answer = ₹420

Q3. Find amount on ₹5000 at 20% for 1 year.

Solution:

5000 × 1.2

✅ Answer = ₹6000

Q4. Find CI on ₹1000 at 10% for 2 years.

Solution:

Amount = 1210

CI = 1210 − 1000

✅ Answer = ₹210

Q5. Find amount on ₹3000 at 5% for 2 years.

Solution:

3000 × 1.05 × 1.05

✅ Answer = ₹3307.5

Q6. Find CI if Principal = ₹4000 and Amount = ₹4840.

Solution:

4840 − 4000

✅ Answer = ₹840

Q7. Find amount on ₹2000 at 10% for 3 years.

Solution:

2000 × 1.1 × 1.1 × 1.1

✅ Answer = ₹2662

Q8. Find CI on ₹1500 at 20% for 2 years.

Solution:

Amount = 2160

CI = 2160 − 1500

✅ Answer = ₹660

Q9. Find amount on ₹2500 at 8% for 2 years.

Solution:

2500 × 1.08 × 1.08

✅ Answer = ₹2916

Q10. Difference between Amount and Principal is called?

Solution:

Amount − Principal

✅ Answer = Compound Interest

Observation Tricks

• Convert percentage into multiplier
• Use yearly multiplication
• Memorize common squares
• Practice fast percentage calculations

Important Compound Interest Formulas

Topic	Formula
Amount	P(1+R/100)^n
CI	Amount − Principal
Growth	Multiply yearly
10% increase	×1.10
20% increase	×1.20

🎯 Daily Practice Strategy

• Practice compound amount calculations
• Practice CI vs SI comparison
• Revise percentage growth problems
• Practice annual compounding questions
• Use financial arithmetic shortcuts

This improves:

• Formula application
• Financial maths speed
• Competitive exam confidence

“Compound Interest Becomes Easy When Percentage Growth Concepts Are Practiced Daily.”

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Bank Exam Practice Material Series