COMPOUND INTEREST QUESTIONS AND ANSWERS
1. A sum is invested at compound interest payable annually. The interest in two successive
years was Rs. 500 and Rs. 540. The sum is:
A.
B.
C.
D.
Rs. 3750
RS. 5000
RS. 5600
Rs. 6250
ANSWER : RS.6250
2. The compound interest of Rs. 20480 at 6 ¼% per annum for 2 years 73 days is:
A. Rs.3000
B. Rs. 3131
C. Rs. 2929
D. Rs. 3636
ANSWER : Rs. 2929
3. A sum of Rs.550 was taken as a loan. This is to be repaid in two equal annual instalments. If
the rate of interest be 20% compounded annual by then he value of each instalment is:
A. RS.421
B. Rs.396
C. Rs.360
D. Rs.350
ANSWER : Rs.360
4. A man borrows Rs.4000 from a beak at 71/2 compound interest. At the end of every year he
pays Rs. 1500 as part repayment of loan and interest. How much does he still how to the
bank after three such instalments:
A. Rs.123.25
B. Rs.125
C. RS.400
D. RS. 469.18
ANSWER : Rs.123.25
5. The difference of compound interests on Rs. 800 for 1 year at 20% per annum when
compounded half yearly and quarterly is:
A. Nil
B. 2.50
C. 4.40
D. 6.60
ANSWER : Rs. 4.40
6. The compound interest on Rs. 2800 for 1 ½ years at 10% per annum, is:
A. Rs. 441.35
B. Rs. 436.75
C. Rs. 434
D. Rs. 420
ANSWER : Rs. 434
7. A sum of money placed of C.T. doubles itself in 5 years. It will amount to eight times itself in:
A. 15 years
B. 20 years
C. 12 years
D. 10 years
ANSWER : 15 years
8. What is the principal amount which earns Rs. 132 as compound interest for the second year
at 10% per annum?
A. Rs. 1000
B. Rs. 1200
C. RS. 1320
D. none of these
ANSWER : Rs. 1200
9. The least number of complete years in which a sum of money put and at 20% C.I. will be
more than doubles is:
A. 3
B. 4
C. 5
D. 6
ANSWER : 4
10. If the compound interest on a certain sum for 2 years at 12.5% per annum is RS. 170, the
simple interest is:
A. RS. 150
B. RS. 152.50
C. RS. 160
D. RS. 162.50
ANSWER : RS. 160
11. The difference between simple interest and the compound interest on Rs. 600 for 1 year at
10% per annum, reckoned half yearly is:
A. Nil
B. Rs. 6.60
C. Rs. 4.40
D. Rs. 1.50
ANSWER : Rs. 1.50
12. Simple interest on a sum at 4% per annum for 2 years is Rs. 80. The compound interest on
the same sum for the same period is:
A. Rs.81.60
B. Rs.160
C. Rs.1081.60
D. none of these
ANSWER : Rs. 81.60
13.The value of machine depreciates every year at the rate at108 on its value at the beginning
of that year. If the present value of the machine is Rs. 729, its worth 3 years ago was:
A. Rs. 947.00
B. Rs.800
C. Rs. 1000
D. RS. 750.82
ANSWER : Rs.1000
14. The difference between the compound interest and the simple in interest on a certain sum
at 5% per annum for 2 years is Rs. 1.50. The sum is:
A. Rs. 600
B. Rs. 500
C. Rs. 400
D. Rs. 300
ANSWER : Rs. 600
15. A tree increases annually by 1/8 th of its height, By how much will at increase after 2 years,
it stand-today 64cm high?
A. 72 cm
B. 74 cm
C. 75 cm
D. 81 cm
ANSWER : 81 cm
16.RS.1600 at 10% per annum compound interest compounded half yearly amount to Rs.
1944.81 in
A. 2 years
B. 3 years
C. 1 years
D. 2 years
ANSWER : 2 years
17. The compound interest on a certain sum of money for 2 years at 10% per annum is RS.
420. The simple interest on the same sum at the same rate and for the same time will be:
A. Rs. 350
B. Rs. 375
C. Rs. 380
D. RS. 400
ANSWER : RS. 400
18. Rs. 800 at 5% per annum compound interest will amount to Rs. 882 in:
A. 1 year
B. 2 year
C. 3 year
D. 4 year
ANSWER : 2 year
19. The compound interest on Rs. 3000 at 7% per annum for a certain time is Rs. 4347. The
time is:
A. 2 year
B. 5 year
C. 3 years
D. 4 years
ANSWER : 2 years
20. At what rate of compound interest per annum will a sum of RS. 1200 become Rs. 1348.32 in
2years?
A. 7%
B. 7.5%
C. 6%
D. 6.5%
ANSWER : 6%
21. The compound interest on a sum for 2 years is Rs. 832 and the simple interest on the same
sum for the same period is Rs.800. The difference between the compound and simple
interests for 3 years will be:
A. Rs.48
B. Rs.66.56
C. Rs.98.56
D. none of these
ANSWER : Rs.98.56
22. A loan was repaid in two annual instalments of Rs. 112 each. If the rate of interest be 10%
per annum compounded annually, the sum borrowed was:
Rs.200
Rs.210
Rs. 217.80
RS.280
ANSWER : Rs.210
23. A sum of money amounts to Rs.10648 in 3 years and Rs. 9680 in 2 years. The rate of intrest
is :
A. 5%
B. 10%
C. 15%
D. 20%
ANSWER : 10%
24. A sum of money becomes Rs.6690 after three years and Rs. 10,035 after six years on
compound interest. The sum is:
A. Rs.4400
B. RS.4445
C. Rs.4460
D. RS.4520
ANSWER : RS.4460
25.The simple interest on a certain sum for 2years at 10% per annum is RS. 90. The
corresponding compound interest is:
A. RS. 99
B. RS. 95.60
C. RS. 94.50
D. RS. 108
ANSWER : RS. 94.50
26. A sum amounts to Rs. 2916 in 2 years and to Rs. 3149.28 in 3 years at compound interest.
The sum is:
A. Rs. 1500
B. Rs.2000
C. Rs.2500
D. Rs.3000
ANSWER : Rs. 2500
27. A sumamounts to Rs. 1352 in 2years at 4% compound interest. The sum is:
A. Rs. 1300
B. Rs. 1250
C. Rs. 1260
D. Rs. 1200
ANSWER : RS. 1250
28. The difference between simple interest and compound interest on a sum for 2 years at 8%
when the interest is compounded annually is Rs.16. If the interest were compounded half
yearly, the difference in two interests would be nearly:
A. Rs.16
B. Rs.16.80
C. Rs. 21.85
D. RS.24.64
ANSWER : RS.24.64
29. A sum of Rs. 12000 deposited at compound interest becomes double after 5 years. After 20
years it will become
A. 120000
B. 192000
C. 124000
D. 96000
ANSWER : 192000
30. If Rs. 7500 are borrowed at C.I. at the rat of 4% per annum, then after 2 years the amount
to be paid is:
A. Rs. 8082
B. Rs. 7800
C. RS. 8100
D. RS. 8112
ANSWER : Rs. 8112