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Compound Interest Questions & Answers

Practice essential Compound Interest questions so that you can answer them correctly in the exams. Compound Interest questions and answers are given a medium weightage in the exam and therefore must be revised.

Q1

Q1 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

6060

B

8788

C

8800

D

8820

Q2

Q2 What is the compound interest on Rs. 5,000 for 1 1/2years at 4 percent per annum according as the interest is compounded yearly?

A

304

B

307

C

308

D

309

Q3

Q3 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%

Q4

Q4 At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

A

6%

B

6.50%

C

7%

D

7.50%

Q5

Q5 The principal amount that becomes Rs. 4913 in 3 years at interest rate of 25/4% per annum when interest is compounded annually is:

A

4306

B

4396

C

4096

D

4809

Q6

Q6 At what percent annum will Rs. 3,000 amount to Rs. 3,993 in 3 years if the interest is compounded annually?

A

6%

B

10%

C

8%

D

12%

Q7

Q7 What is the difference between compound interest and simple interest on Rs. 5,000 for 2 years at 4 per cent per annum according as the interest is compounded yearly?

A

Rs.2.04

B

Rs.3.06

C

Rs.4.80

D

Rs.8.30

Q8

Q8 The difference between the compound interest and simple interest on certain sum at 10% per annum for 2 years is Rs. 631. What is the sum?

A

63100

B

56000

C

42160

D

68000

Q9

Q9 The simple interest on certain sum for 2 years is Rs.160 and compound interest at same rate of interest is Rs.168. What is the sum & Rate of interest?

A

1000,11%

B

800,10%

C

1600,8%

D

1200,12.5%

Q10

Q10 A person lent out a certain sum on simple interest and the same sum on compound interest at a certain rate of interest per annum. He noticed that the ratio between the difference of compound interest and simple interest of 3 years and that of 2 years is 25 : 8. The rate of interest per annum is

A

11.50%

B

10%

C

8%

D

12.50%

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Practice Compound Interest Questions & Answers

The more questions a candidate answers, the better their understanding of the Compound Interest concepts and their ability to answer quickly and accurately.

Importance: Medium

Difficulty level: 3 out of 5 (Normal)

Examination- SSC, Banking, GMAT, GRE, SAT, CAT, etc.

Parent section: Quantitative Aptitude

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