SI CI CAT Questions Important [Formulae]
For candidates to solve the SI CI CAT Questions, it is recommended that they are through with the formulae of the said topic. The formulae for SI CI CAT Questions are given below:
- Simple Interest (S.I): The simple interest (I) accrued over a time period (T) for R% (rate of interest per annum) is given as follows
- The sum of principal and interest is called the amount.
Amount (A) = Principal (P) + Interest (I)
- Compound Interest (C.I): The interest accrued is given as follows:
- The amount to be paid if money is borrowed at compound interest for N number of years is given as follows:
If the compounding period is not annual, then the rate of interest is divided in accordance with the compounding period. For example:
- If the interest is compounded half-yearly or semi-annually, then the amount can be written as follows:
- If the interest is compounded quarterly, then the amount can be written as follows:
- If the interest is compounded monthly, then the amount can be written as follows:
- If the interest is compounded daily, then the amount can be written as follows:
And if it is a leap year, then the amount can be written as follows:
- If the interest rate is R1% for the first year, R2% for the second year, and R3% for 3rd year, then the amount can be determined as follows:
- If the principal amount is P and rate of interest is R, then the difference between compound interest and simple interest for 2 years is as follows:
- If a certain sum becomes ‘x’ times in n years, then the rate of compound interest will be:
- If a sum of money P amounts to A1 after T years at CI and the same sum of money amounts to A2 after (T + 1) years at CI, then we can write the following:
Practice Simple Interest and Compound Interest CAT Questions
It is important that candidates practice SI CI CAT Questions so that they are able to ace the exam. Candidates can check the CAT Questions on SI CI given below to understand the types of questions that can be asked in the exam.
Question 1: What Principal amount will produce Rs. 500 as simple interest at an interest rate of 5% per annum in 6 years?
Question 2: In how many years will the principal of Rs. 1000 will give an interest of Rs. 200 at an interest rate of 5%?
Question 3: Akash invested a certain sum in a scheme offering simple interest for 5 years at the interest rate of 8%. Rohit invested three times the sum invested by Akash in the same scheme for 2 years. If the difference between the amounts of Rohit and Akash after respective periods is Rs. 1648, what was the sum invested by Rohit?
Question 4: The rate of simple interest on a sum is 6% per annum for the first 3 months, next five months the rate of interest is 8% per annum and 5% per annum for the period of beyond 8 months. If the total simple interest is Rs 3510 for the period of one year then find what is the sum?
Question 5: Arun invested Rs. 10000 at the rate of 10% compound interest. If in first-year interest is calculated half-yearly and annually in the second year, then find the total interest received by Arun after 2 years.
Question 6: David deposited Rs. Q at 20% per annum and Charls deposited Rs. (Q – 8000) at the rate of 10% per annum. If at the end of two years, the total compound interest received is Rs. 8720, then find the capital invested by Charls.
Question 7: Pritam deposited Rs. ‘x’ in bank A at 30% compound interest and Rs. ‘x + 600’ in bank B at 36% simple interest for 3 years. If the interest earned by him from bank A was Rs. 1107 more than the interest earned by him from bank B, then find the value of ‘x’.
Question 8: The difference between the compound interest and the simple interest received after 3 years on the sum of Rs. 40000 is Rs. 3104. Find the rate of interest for the third year if the rate of interest for the first and second year is 10% and 20% respectively.
SI CI CAT Questions PDF Download
As 1-2 SI CI CAT Questions are usually asked in the exam, candidates are advised to practice this topic. Candidates are advised to practice as many questions as possible in order to have a clear understanding of the types of questions that can be asked in the exam. For the ease of the candidates, SI CI CAT Questions PDF is given below:
How to Prepare for SI CI CAT Questions
Candidates should be aware that out of the total 66 Questions asked in CAT 2021, 22 Questions were from the Quantitative Ability Section. Based on previous year’s trends, candidates can expect 1-2 SI CI CAT Questions. Candidates should practice previous year’s papers and attempt mock tests so that they have an understanding of the difficulty level of the SI CI CAT Questions asked in the exam. Candidates can refer to the sessions available on BYJU’S Exam Prep App for understanding the topic. A few tips to prepare for SI CI CAT Questions are given below:
- Candidates should have clear concepts about SI CI in order to solve SI CI CAT Questions.
- They should solve previous year’s papers to get an idea of the type of questions asked.
- Candidates should attempt Mock tests to get an actual exam-like experience.
Best Books to Prepare SI CI CAT Questions
In order to solve the SI CI CAT Questions candidates must have their fundamentals clear. They should refer to quality books and study material. Candidates can check the study notes available at BYJU’S Exam Prep App and also the books curated by our experts from IIMs which are available to our candidates who have enrolled for the Online Classroom Program.