A principal P becomes Q in one year when compounded half-yearly at an annual rate of R%. The same principal P becomes Q in one year when compounded annually at an annual rate of S%. Which of the following is correct?
CSAT Maths · Applied Arithmetic
Simple and Compound Interest – CSAT PYQs
3 UPSC CSAT Simple and Compound Interest questions with answers and step-by-step solutions.
About this topic
Simple Interest and Compound Interest are important concepts in the Basic Numeracy section of UPSC CSAT. Simple Interest is calculated only on the original principal amount, whereas Compound Interest is calculated on the principal along with the interest accumulated over previous periods. This subtopic covers the basic concepts, formulas, calculation of interest and amount, determination of principal, rate and time, and comparison between simple and compound interest. It also includes questions involving different compounding periods such as annual and half-yearly compounding.
Previous Year Questions – Simple and Compound Interest
A person bought a refrigerator for ₹22,800 at 12.5% compound interest per annum, compounded yearly. He paid ₹8,650 at the end of the first year and ₹9,125 at the end of the second year. How much should he pay at the end of the third year to completely clear the debt?
Options:
As per agreement with a bank, a businessman had to refund a loan in some equal installments without interest. After paying 18 installments he found that 60 percent of his loan was refunded. How many installments were there in the agreement?
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