252 + Mcqs in Compound Interest Page 5 McqOptions

201.	A sum of Rs 15000 is lent at compound interest (compounded annually) at an interest rate of 20% per annum. If the interest is compounded half yearly, then how much more interest (in Rs) will be obtained in one year?_x005F_x000D_
A.	225_x005F_x000D_
B.	150_x005F_x000D_
C.	75_x005F_x000D_
D.	300
Answer» C. 75_x005F_x000D_

Discussion

202.	A sum of Rs 10000 becomes Rs 14641 when invested at compound interest at the yearly interest rate of 20% per annum. If the compounding is done half yearly, then for how many years was the sum invested?_x005F_x000D_
A.	1
B.	2
C.	3
D.	4
Answer» C. 3

Discussion

203.	A sum of Rs. 2000 amounts to Rs. 4000 in two years at compound interest. In how many years does the same amount becomes Rs. 8000.
A.	2
B.	4
C.	6
D.	8
Answer» C. 6

Discussion

204.	A sum of Rs. 2000 at 40% per annum compounded annually. Calculate the interest for the third your at compound interest.
A.	1500
B.	1600
C.	1568
D.	1750
Answer» D. 1750

Discussion

205.	A sum of money when invested for a year at the rate of 10% interest per annum compounded half-yearlyÂ becomes â‚¹ 44,100 at maturity. The sum invested was ............_x005F_x000D_
A.	â‚¹ 40000
B.	â‚¹ 40500
C.	â‚¹ 39800
D.	â‚¹ 40250
Answer» B. â‚¹ 40500

Discussion

206.	A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.482 more, if the interest was payable half yearly than if it was payable annually . The sum is
A.	10000
B.	20000
C.	40000
D.	50000
Answer» C. 40000

Discussion

207.	A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years. The rate of interest per annum is
A.	0.06
B.	0.04
C.	0.05
D.	0.07
Answer» D. 0.07

Discussion

208.	A sum of money is invested at 20% compound interest (compounded annually). It would fetch Rs. 723 more if interest is compounded half-yearly. The sum
A.	Rs.15,000
B.	Rs.30,000
C.	Rs.20,000
D.	Rs.7,500
Answer» C. Rs.20,000

Discussion

209.	A sum of money amounts to Rs.6690 after 3 years and to Rs.10,035 after 6 years on compound interest.find the sum.
A.	4360
B.	4460
C.	4560
D.	4660
Answer» C. 4560

Discussion

210.	A sum is equally invested in two different schemes on CI at the rate of 15% and 20% for two years. If interest gained from the sum invested at 20% is Rs. 528.75 more than the sum invested at 15%, find the total sum?
A.	Rs. 7000
B.	Rs. 4500
C.	Rs. 9000
D.	Rs. 8200
Answer» D. Rs. 8200

Discussion

211.	A sum is being lent at 20 % per annum compound interest.what is the ratio of increase in amount of 4th year to 5th year?
A.	0.17013888888889
B.	0.21111111111111
C.	0.2125
D.	can't be determined
Answer» D. can't be determined

Discussion

212.	A retirement benefit of $12,000 is to be paid every 6 months for 25 years at interest rate of 7% compounded semi-annually. Find_x005F_x000D_ (a) the present value to fund the end-of-period retirement benefit._x005F_x000D_ (b) the end-of-period semi-annual payment needed to accumulate Â the value in part (a) assuming regular investments for 30 years in an account yielding 8% compounded semi-annually
A.	245678
B.	234689
C.	281468.06
D.	234578
Answer» D. 234578

Discussion

213.	A sum becomes 1.69 times of itself in 2 years when invested at compound interest. What is the per annum rate of interest (in percentage)?
A.	38
B.	34.5
C.	13
D.	30
Answer» E.

Discussion

214.	AÂ loan is made for $4800 with an APR of 12% and payments made monthly for 24 months. What is the payment amount? What is the finance charge?
A.	622.8
B.	522.8
C.	322.8
D.	632.8
Answer» B. 522.8

Discussion

215.	A man invests Rs.5000 for 3 years at 5% p.a. compound interest reckoned yearly. Income tax at the rate of 20% on the interest earned is deducted at the end of each year. Find the amount at the end of the third year
A.	Rs.5624.32
B.	Rs.5423
C.	Rs.5634
D.	Rs.5976
Answer» B. Rs.5423

Discussion

216.	A man borrowed some money and agreed to pay-off by paying Rs 3150 at the end of the 1st year and Rs 4410 at the end of the 2nd year. If the rate ofÂ compound interest is 5% per annum, then the sum is
A.	Rs 5000
B.	Rs 6500
C.	Rs 7000
D.	Rs 9200
Answer» D. Rs 9200

Discussion

217.	A loan of Rs. 305 was taken at a certain rate per annum of compound interest, for 3 years. After 3 years the amountÂ repaid was Rs. 670, calculate the rate of compound interest.
A.	0.3
B.	0.35
C.	0.33
D.	0.25
Answer» B. 0.35

Discussion

218.	A loan is made for $3500 with an interest rate of 9% and payments made annually for 4 years. What is the payment amount?
A.	8906
B.	1089
C.	1070
D.	1080.34
Answer» E.

Discussion

219.	A chartered bank offers a five-year Escalator Guaranteed Investment Certificate.In successive years it pays annual interest rates of 4%, 4.5%, 5%, 5.5%, and 6%, respectively, compounded at the end of each year. The bank also offers regular five-year GICs paying a fixed rate of 5% compounded annually. Calculate and compare the maturity values of $1000 invested in each type of GIC. (Note that 5% is the average of the five successive one-year rates paid on the Escalator GIC.)
A.	1276.28
B.	1234
C.	1278
D.	1256
Answer» B. 1234

Discussion

220.	A five-year promissory note with a face value of $3500, bearing interest at 11%Â compounded semiannually, was sold 21 months after its issue date to yield the buyer 10% compounded quarterly.What amount was paid for the note
A.	4336.93
B.	5336
C.	6336
D.	7336
Answer» B. 5336

Discussion

221.	A certain sum when invested at 5% interest compounded annually for 3 years yields an interest of Rs.2522. Find the Principal?
A.	Rs. 12,522
B.	Rs. 15,200
C.	Rs. 16,000
D.	Rs. 17,200
Answer» D. Rs. 17,200

Discussion

222.	A certain sum is invested for 2 years in scheme M at 20% p.a. compound interest (compounded annually), Same sum is also invested for the same period in scheme N at k% p.a. simple interest. The interest earned from scheme M is twice of that earned from scheme N. What is the value of k?
A.	7
B.	11
C.	9
D.	13
Answer» C. 9

Discussion

223.	A bank offers 5% compound interest per half year. A customer deposits Rs 4800 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest?
A.	Rs 732
B.	Rs 1464
C.	Rs 366
D.	Rs 183
Answer» B. Rs 1464

Discussion

224.	A certain sum amounts to Rs.7350 in 2 years and to Rs.8575 in 3 years.find the sum and rate percent
A.	3400
B.	4400
C.	5400
D.	6400
Answer» D. 6400

Discussion

225.	A certain sum amounts to Rs.280900 in 2 years at 6% per annum, interest compounded annually. The sum is:_x005F_x000D_
A.	Rs.250000
B.	Rs.200000
C.	Rs.350000
D.	Rs.550000
Answer» B. Rs.200000

Discussion

226.	A bank offers 20% compound interest per half year. A customer deposits Rs 6000 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is
A.	Rs 7680
B.	Rs 3840
C.	Rs 1920
D.	Rs 960
Answer» C. Rs 1920

Discussion

227.	A bank offers 20% compound interest per half year. A customer deposits Rs 2800 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is ______.
A.	Rs 3584
B.	Rs 896
C.	Rs 1792
D.	Rs 448
Answer» D. Rs 448

Discussion

228.	A bank offers 20% compound interest calculated on half year basis. A customer deposits Rs 9200 each on 1st January and 1st July of a year. At the endÂ of the year, the amount he would have gained by way of interest is
A.	Rs 11776
B.	Rs 2944
C.	Rs 1472
D.	Rs 5888
Answer» E.

Discussion

229.	A bank offers 5% compound interest per half year. A customer deposits Rs. 3200 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is:
A.	Rs 976
B.	Rs 244
C.	Rs 488
D.	Rs 122
Answer» D. Rs 122

Discussion

230.	A bank offers 15% compound interest per half year. A customer deposits Rs 8800 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is _____.
A.	Rs 8315
B.	Rs 2079
C.	Rs 4158
D.	Rs 1039
Answer» D. Rs 1039

Discussion

231.	A bank offers 15% compound interest per half year. A customer deposits Rs 7200 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by means of interest is
A.	Rs 6803
B.	Rs 850
C.	Rs 3402
D.	Rs 1701
Answer» D. Rs 1701

Discussion

232.	A bank offers 15% compound interest per half year. A customer deposits Rs 2400 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is
A.	Rs 2268
B.	Rs 1134
C.	Rs 567
D.	Rs 283
Answer» C. Rs 567

Discussion

233.	A bank offers 10% compound interest per half year. A customer deposits Rs. 5200 each on 1st January and 1st July of a year. At the end of theÂ year, the amount he would have profit by way of interest is:
A.	Rs 3224
B.	Rs 1612
C.	Rs 806
D.	Rs 403
Answer» C. Rs 806

Discussion

234.	A bank offers 10% compound interest per half year. A customer deposits Rs. 2000 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is
A.	Rs 1240
B.	Rs 310
C.	Rs 155
D.	Rs 620
Answer» E.

Discussion

235.	A bank offers 10% compound interest per half year. A customer deposits Rs. 3600 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is.
A.	Rs 1116
B.	Rs 2232
C.	Rs 558
D.	Rs 279
Answer» B. Rs 2232

Discussion

236.	A $1000 face value Series S50 compound interest Canada Savings Bond (CSB) was presented to a creditÂ union branch for redemption.What amount did the owner receive if the redemption was requested on:January 17, 2001?
A.	1206
B.	1306
C.	1406
D.	1506
Answer» C. 1406

Discussion

237.	$10,000 face value strip bond has 15 years remaining until maturity. If the prevailing market rate ofÂ return is 6.5% compounded semiannually, what is the fair market value of the strip bond?
A.	1710.29
B.	2710.29
C.	3710.29
D.	4710.29
Answer» D. 4710.29

Discussion

238.	15 semiannual payments are made into a sinking fund at 7% compounded semiannually so that $4850 will be present. Find the amount of each payment rounded to the nearest cent
A.	251.35
B.	245.45
C.	235.87
D.	251
Answer» B. 245.45

Discussion

239.	The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
A.	6.06%
B.	6.07%
C.	6.08%
D.	6.09%
Answer» E.

Discussion

240.	Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?
A.	Rs. 8600
B.	Rs. 8620
C.	Rs. 8820
D.	None of these
Answer» D. None of these

Discussion

241.	The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:
A.	3
B.	4
C.	5
D.	6
Answer» C. 5

Discussion

242.	At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
A.	6%
B.	6.5%
C.	7%
D.	7.5%
Answer» B. 6.5%

Discussion

243.	What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?
A.	Rs. 9000.30
B.	Rs. 9720
C.	Rs. 10123.20
D.	Rs. 10483.20
E.	None of these
Answer» D. Rs. 10483.20

Discussion

244.	The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
A.	2
B.	21/2
C.	3
D.	4
Answer» B. 21/2

Discussion

245.	What is the difference between the compound interests on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?
A.	Rs. 2.04
B.	Rs. 3.06
C.	Rs. 4.80
D.	Rs. 8.30
Answer» B. Rs. 3.06

Discussion

246.	The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
A.	625
B.	630
C.	640
D.	650
E.	None of these
Answer» B. 630

Discussion

247.	A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:
A.	Rs. 120
B.	Rs. 121
C.	Rs. 122
D.	Rs. 123
E.	None of these
Answer» C. Rs. 122

Discussion

248.	The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:
A.	Rs. 400
B.	Rs. 500
C.	Rs. 600
D.	Rs. 800
Answer» C. Rs. 600

Discussion

249.	The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?
A.	8
B.	10
C.	12
D.	Cannot be determined
E.	None of these
Answer» B. 10

Discussion

250.	The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:
A.	Rs. 2.50
B.	Rs. 3
C.	Rs. 3.75
D.	Rs. 4
E.	None of these
Answer» C. Rs. 3.75

Discussion

Explore topic-wise MCQs in Arithmetic Ability.

A sum of Rs 15000 is lent at compound interest (compounded annually) at an interest rate of 20% per annum. If the interest is compounded half yearly, then how much more interest (in Rs) will be obtained in one year?_x005F_x000D_

A sum of Rs 10000 becomes Rs 14641 when invested at compound interest at the yearly interest rate of 20% per annum. If the compounding is done half yearly, then for how many years was the sum invested?_x005F_x000D_

A sum of Rs. 2000 amounts to Rs. 4000 in two years at compound interest. In how many years does the same amount becomes Rs. 8000.

A sum of Rs. 2000 at 40% per annum compounded annually. Calculate the interest for the third your at compound interest.

A sum of money when invested for a year at the rate of 10% interest per annum compounded half-yearlyÂ becomes â‚¹ 44,100 at maturity. The sum invested was ............_x005F_x000D_

A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.482 more, if the interest was payable half yearly than if it was payable annually . The sum is

A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years. The rate of interest per annum is

A sum of money is invested at 20% compound interest (compounded annually). It would fetch Rs. 723 more if interest is compounded half-yearly. The sum

A sum of money amounts to Rs.6690 after 3 years and to Rs.10,035 after 6 years on compound interest.find the sum.

A sum is equally invested in two different schemes on CI at the rate of 15% and 20% for two years. If interest gained from the sum invested at 20% is Rs. 528.75 more than the sum invested at 15%, find the total sum?

A sum is being lent at 20 % per annum compound interest.what is the ratio of increase in amount of 4th year to 5th year?

A sum becomes 1.69 times of itself in 2 years when invested at compound interest. What is the per annum rate of interest (in percentage)?

AÂ loan is made for $4800 with an APR of 12% and payments made monthly for 24 months. What is the payment amount? What is the finance charge?

A man invests Rs.5000 for 3 years at 5% p.a. compound interest reckoned yearly. Income tax at the rate of 20% on the interest earned is deducted at the end of each year. Find the amount at the end of the third year

A man borrowed some money and agreed to pay-off by paying Rs 3150 at the end of the 1st year and Rs 4410 at the end of the 2nd year. If the rate ofÂ compound interest is 5% per annum, then the sum is

A loan of Rs. 305 was taken at a certain rate per annum of compound interest, for 3 years. After 3 years the amountÂ repaid was Rs. 670, calculate the rate of compound interest.

A loan is made for $3500 with an interest rate of 9% and payments made annually for 4 years. What is the payment amount?

A five-year promissory note with a face value of $3500, bearing interest at 11%Â compounded semiannually, was sold 21 months after its issue date to yield the buyer 10% compounded quarterly.What amount was paid for the note

A certain sum when invested at 5% interest compounded annually for 3 years yields an interest of Rs.2522. Find the Principal?

A certain sum is invested for 2 years in scheme M at 20% p.a. compound interest (compounded annually), Same sum is also invested for the same period in scheme N at k% p.a. simple interest. The interest earned from scheme M is twice of that earned from scheme N. What is the value of k?

A bank offers 5% compound interest per half year. A customer deposits Rs 4800 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest?

A certain sum amounts to Rs.7350 in 2 years and to Rs.8575 in 3 years.find the sum and rate percent

A certain sum amounts to Rs.280900 in 2 years at 6% per annum, interest compounded annually. The sum is:_x005F_x000D_

A bank offers 20% compound interest per half year. A customer deposits Rs 6000 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is

A bank offers 20% compound interest per half year. A customer deposits Rs 2800 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is ______.

A bank offers 20% compound interest calculated on half year basis. A customer deposits Rs 9200 each on 1st January and 1st July of a year. At the endÂ of the year, the amount he would have gained by way of interest is

A bank offers 5% compound interest per half year. A customer deposits Rs. 3200 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is:

A bank offers 15% compound interest per half year. A customer deposits Rs 8800 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is _____.

A bank offers 15% compound interest per half year. A customer deposits Rs 7200 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by means of interest is

A bank offers 15% compound interest per half year. A customer deposits Rs 2400 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is

A bank offers 10% compound interest per half year. A customer deposits Rs. 5200 each on 1st January and 1st July of a year. At the end of theÂ year, the amount he would have profit by way of interest is:

A bank offers 10% compound interest per half year. A customer deposits Rs. 2000 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is

A bank offers 10% compound interest per half year. A customer deposits Rs. 3600 each on 1st January and 1st July of a year. At the end of the year, theÂ amount he would have gained by way of interest is.

A $1000 face value Series S50 compound interest Canada Savings Bond (CSB) was presented to a creditÂ union branch for redemption.What amount did the owner receive if the redemption was requested on:January 17, 2001?

$10,000 face value strip bond has 15 years remaining until maturity. If the prevailing market rate ofÂ return is 6.5% compounded semiannually, what is the fair market value of the strip bond?

15 semiannual payments are made into a sinking fund at 7% compounded semiannually so that $4850 will be present. Find the amount of each payment rounded to the nearest cent

The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:

Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?

The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:

At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

What is the difference between the compound interests on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:

The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?

The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is: