Explore topic-wise MCQs in Compound Interest.

This section includes 99 Mcqs, each offering curated multiple-choice questions to sharpen your Compound Interest knowledge and support exam preparation. Choose a topic below to get started.

1.

The simple interest accrued on an amount of Rs.49500 at he end of three is Rs.17820. What would be the compound interest accured on the same amount at teh same rate in the same period? (Round off your answer to two decimal places)

A. Rs.20043.94
B. Rs.18654.81
C. Rs.20264.46
D. Rs.19612.41
Answer» B. Rs.18654.81
Discussion
2.

A man gets a simple interest of Rs.500 on a certain principal at the rate of 5% p.a in two years. Find the compound interest the man will get on twice the principal in two years at the same rate.

A. Rs.500
B. Rs.250
C. Rs.5012.50
D. None of these.
Answer» E.
Discussion
3.

A sum of Rs.4800 is invested at a compound interest for three years, the rate of interest being 10% p.a., 20% p.a. and 25% p.a. for the 1st, 2nd and the 3rd years respectively. Find the interest received at the end of the three years.

A. Rs.2520
B. Rs.3120
C. Rs.3320
D. Rs.2760
Answer» C. Rs.3320
Discussion
4.

Compound interest earned on a sum for the second and the third years are Rs.1200 and Rs.1440 respectively. Find the rate of interest?

A. 18% p.a.
B. 22% p.a.
C. 20% p.a.
D. 24% p.a.
Answer» D. 24% p.a.
Discussion
5.

Raj invested an amount of Rs.17400 for two years. Find the rate of compound interest that will fetch him an amount of Rs.1783.50 at the end of two years?

A. 8% p.a.
B. 6% p.a.
C. 4% p.a.
D. 5% p.a.
Answer» E.
Discussion
6.

Find the compound interest accrued on an amount of Rs.14,800 at 13.5% p.a at the end of two years.

A. Rs.4273
B. Rs.4613
C. Rs.4064
D. Rs.4266
Answer» E.
Discussion
7.

The compound interest earned by Sunil on a certain amount at the end of two years at the rate of 8% p.a. was Rs.2828.80. Find the total amount that Sunil got back at the end of two years in the form of principal plus interest earned.

A. Rs.18,828.80
B. Rs.19,828.80
C. Rs.18,028.80
D. Rs.17,828.80
Answer» C. Rs.18,028.80
Discussion
8.

What amount does Kiran get if he invests Rs.8000 at 10% p.a. compound interest for two years, compounding done annually?

A. Rs.9630
B. Rs.9680
C. Rs.9610
D. None of these
Answer» E.
Discussion
9.

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

A. Rs. 9000.30
B. Rs. 9720
C. Rs. 10123.20
D. Rs. 10483.20
Answer» D. Rs. 10483.20
Discussion
10.

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

A. Rs. 8600
B. Rs. 8620
C. Rs. 8800
D. None of these
Answer» E.
Discussion
11.

Siddharth wants to borrow Rs.6000 at rate of interest 6% p.a. at S.I and lend the same amount at C.I at same rate of interest for two years. What would be his income in the above transaction?

A. Rs.21.60
B. Rs.24.00
C. Rs.25.20
D. Rs.27.80
Answer» B. Rs.24.00
Discussion
12.

The simple interest on Rs.12000 at a certain rate of interest in five years is Rs.7200. Find the compound interest on the same amount for five years at the same rate of interest.

A. Rs.3502.80
B. Rs.3052.40
C. Rs.3054.8
D. Rs.3052.80
Answer» E.
Discussion
13.

What is the difference between the compound interest on Rs.12000 at 20% p.a. for one year when compounded yearly and half yearly?

A. Rs.140
B. Rs.120
C. Rs.130
D. Rs.110
Answer» C. Rs.130
Discussion
14.

Ravi invested certain amount for two rates of simple interests at 6% p.a. and 7% p.a. What is the ratio of Ravi's investments if the interests from those investments are equal?

A. 4 : 3
B. 3 : 2
C. 6 : 5
D. 7 : 6
Answer» E.
Discussion
15.

The compound and the simple interests on a certain sum at the same rate of interest for two years are Rs.11730 and Rs.10200 respectively. Find the sum.

A. Rs.18000
B. Rs.17000
C. Rs.18500
D. Rs.17500
Answer» C. Rs.18500
Discussion
16.

A person got Rs.48 more when he invested a certain sum at compound interest instead of simple interest for two years at 8% p.a. Find the sum?

A. Rs.7500
B. Rs.7000
C. Rs.8000
D. Rs.6500
Answer» B. Rs.7000
Discussion
17.

Find the amount on Rs.5000 in 2 years, the rate of interest being 4% per first year and 5% for the second year?

A. Rs.460
B. Rs.5640
C. Rs.5460
D. Rs.5604
Answer» D. Rs.5604
Discussion
18.

The population of a city increases at the rate of 4% p.a. but there is an additional annual increase of 1% in the population due to some job seekers. The percentage increase in the population after 2 years is?

A. 10
B. 11
C. 10.25
D. 10.15
Answer» D. 10.15
Discussion
19.

The compound interest accrued on an amount of Rs.44000 at the end of two years is Rs.1193.60. What would be the simple interest accrued on the same amount at the same rate in the same period?

A. Rs.10,840
B. Rs.10,720
C. Rs.10,560
D. Rs.10,280
Answer» D. Rs.10,280
Discussion
20.

A man saves Rs. 200 at the end of each year and lends the money at 5% compound interest. How much will it become at the end of 3 years?

A. Rs. 565.25
B. Rs. 635
C. Rs. 662.02
D. Rs. 666.50
Answer» D. Rs. 666.50
Discussion
21.

What compound interest will Rs. 5000 fetch in 3 years 10 months at 30% per annum?

A. Rs. 8725.25
B. Rs. 8735.50
C. Rs. 8856.55
D. Rs. 8731.25
Answer» E.
Discussion
22.

A town has population of 50,000 in 1988. In one year i.e. by 1989 it increased by 25%. Next year i.e. in 1990, it decreased by 30%. The next year in 1991 there was an increase of 40%. What is the population at end of 1991?

A. 60250
B. 62250
C. 66550
D. 61250
Answer» E.
Discussion
23.

How much money invested at compound interest will yield Rs. 6350.40 at the end of 3 years? For the first year the rate of interest is 5%; for second year it increases to 12% and for third year it decreases to 8%.

A. Rs. 5800
B. Rs. 5500
C. Rs. 6000
D. Rs. 5000
Answer» E.
Discussion
24.

Amit gave his friend Rs. 11000. This was to be repaid in 2 yearly installments with a rate of interest of 20% compounded annually. How much would be the value of each installment?

A. Rs. 7200
B. Rs. 8200
C. Rs. 5500
D. Rs. 6400
Answer» B. Rs. 8200
Discussion
25.

An amount becomes 4 times in 6 years. In how many years will it become 64 times if the rate of interest remains unchanged?

A. 24 years
B. 18 years
C. 16 years
D. 12 years
Answer» C. 16 years
Discussion
26.

Amit gave his friend Rs. 11000. This loan was to be repaid in 3 yearly installments with a rate of interest of 20% compounded annually. How much would be the value of each installment?

A. Rs. 3666.67
B. Rs. 5221.97
C. Rs. 5000
D. Rs. 4528.69
Answer» C. Rs. 5000
Discussion
27.

Find the sum The difference between the compound and S.I. on a certain sum of money for 2 years at 10% per annum is Rs.15 of money?

A. 1500
B. 1800
C. 2100
D. 1950
Answer» B. 1800
Discussion
28.

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
Answer» B. 630
Discussion
29.

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
Answer» C. Rs. 122
Discussion
30.

A sum of money becomes Rs 13,380 in 3 years and Rs 20,070 in 6 years at compound interest. The initial sum is?

A. Rs 9040
B. Rs 8900
C. Rs 8920
D. Rs 9160
Answer» D. Rs 9160
Discussion
31.

Find the compound interest on Rs. 25000 in 2 years at 4% per annum. The interest being compounded half yearly.

A. Rs 3570.250
B. Rs 2896.598
C. Rs 2060.804
D. Rs 1050.200
Answer» D. Rs 1050.200
Discussion
32.

What will be the difference between simple interest and compound interest @ 10% per annum on a sum of Rs. 1000 after 3 years?

A. Rs. 31
B. Rs. 32.10
C. Rs. 40.40
D. Rs. 64.10
Answer» B. Rs. 32.10
Discussion
33.

Rohit invests a sum of money at compound interest which doubles itself in 3 years, find in how many years will it amount to four times itself ?

A. 4
B. 6
C. 10
D. 14
Answer» C. 10
Discussion
34.

A sum amount to Rs.1344 in two years at simple interest. What will be the compound interest on the same sum at the same rate of interest for the same period?

A. Rs.150
B. Rs.140
C. Rs.130
D. Data insufficient for the answer
Answer» E.
Discussion
35.

A money lender lends Rs.2000 for six months at 20% p.a. rate. It the interest is reckoned quarterly than find the amount given after time limit.

A. Rs.2205
B. Rs.2200
C. Rs.2160
D. Rs.2040
Answer» B. Rs.2200
Discussion
36.

Indu gave Bindu Rs.1250 on compound interest for 2 years at 4% per annum. How much loss would Indu has suffered had she given it to Bindu for 2 years at 4% per annum simple interest?

A. Rs.10
B. Rs.2
C. Rs.5
D. Rs.3
Answer» C. Rs.5
Discussion
37.

How much more would Rs.20000 fetch, after two years, if it is put at 20% p.a. compound interest payable half yearly than if is put at 20% p.a. compound interest payable yearly?

A. Rs.482
B. Rs.424
C. Rs.842
D. Rs.512
Answer» B. Rs.424
Discussion
38.

In one year, the population, of a village increased by 10% and in the next year, it decreased by 10%. If at the end of 2nd year, the population was 7920, what was it in the beginning?

A. 8500
B. 8000
C. 8100
D. 8400
Answer» C. 8100
Discussion
39.

Every year an amount increases by 1/8th of itself. How much will it be after two years if its present value is Rs.64000?

A. Rs.81000
B. Rs.80000
C. Rs.75000
D. Rs.64000
Answer» B. Rs.80000
Discussion
40.

Rajan borrowed Rs.4000 at 5% p.a compound interest. After 2 years, he repaid Rs.2210 and after 2 more year, the balance with interest. What was the total amount that he paid as interest?

A. Rs.635.50
B. Rs.613.50
C. Rs.675.50
D. Rs.653.50
Answer» B. Rs.613.50
Discussion
41.

Find the amount on Rs.8000 in 9 months at 20% per annum, if the interest being compounded quarterly?

A. Rs.1261
B. Rs.9261
C. Rs.9621
D. Rs.9162
Answer» C. Rs.9621
Discussion
42.

What sum of money put at C.I amounts in 2 years to Rs.8820 and in 3 years to Rs.9261?

A. Rs.8000
B. Rs.8400
C. Rs.7500
D. None
Answer» B. Rs.8400
Discussion
43.

The difference between the compound interest compounded annually and simple interest for 2 years at 20% per annum is Rs.144. Find the principal?

A. Rs.3000
B. Rs.3300
C. Rs.3600
D. Rs.3900
Answer» D. Rs.3900
Discussion
44.

In 3 years by compound interest, a sum becomes Rs. 900. But in 4 years by compound interest, the same sum becomes Rs. 1000. What is the sum and the rate of interest?

A. Rs. 625.20, 12.50%
B. Rs. 656.10, 11.11%
C. Rs. 686.50, 12.50%
D. Rs. 695.80, 11.11%
Answer» C. Rs. 686.50, 12.50%
Discussion
45.

What will be the interest earned on sum of Rs. 5500 kept for 6 months at 25% interest rate compounded quarterly?

A. Rs. 825
B. Rs. 735.5
C. Rs. 855
D. Rs. 815
Answer» B. Rs. 735.5
Discussion
46.

The population of a city is 50,000 at present. It increases at the rate of 10% per annum. What will be its population 3 yr from now?

A. 67,250
B. 65,550
C. 60,500
D. 66,550
Answer» E.
Discussion
47.

Rs. 400 is simple interest for a sum for 4 years at 10% rate of interest per annum. Find the compound interest for the same sum at same rate of interest for same time period?

A. Rs. 464.10
B. Rs. 480.60
C. Rs. 454.50
D. Rs. 464
Answer» B. Rs. 480.60
Discussion
48.

A sum of money is put out at compound interest for 2 years at 20%. It would fetch Rs.482 more if the interest were payable half-yearly, then it were pay able yearly. Find the sum.

A. Rs.4000
B. Rs.1000
C. Rs.1250
D. Rs.2000
Answer» E.
Discussion
49.

The difference between compound and simple interest on a certain sum of money for 3 years at 6 2/3% p.a is Rs.184. Find the sum?

A. Rs.12000
B. Rs.14200
C. Rs.17520
D. Rs.13500
Answer» E.
Discussion
50.

The difference between simple interest and C.I. at the same rate for Rs.5000 for 2 years in Rs.72. The rate of interest is?

A. 10%
B. 12%
C. 6%
D. 8%
Answer» C. 6%
Discussion