Compound Interest - Question Bank

1. The difference between the compound interest and simple interest on Rs. 1200 for 2 years at 5% per annum is:
A) Rs. 3
B) Rs. 6
C) Rs. 12
D) Rs. 30
2. A sum of money becomes Rs. 9261 in 3 years at compound interest. If the rate of interest is 5% per annum, what is the principal amount?
A) Rs. 7000
B) Rs. 7500
C) Rs. 8000
D) Rs. 8500
3. If the compound interest on a sum for 2 years is Rs. 410 and the simple interest on the same sum for 2 years at the same rate is Rs. 400, find the rate of interest.
A) 5%
B) 10%
C) 2.5%
D) 7.5%
4. A sum of money invested at compound interest amounts to Rs. 2400 in 1 year and Rs. 2900 in 2 years. The rate of interest is:
A) 20%
B) 25%
C) 16.67%
D) 22.5%
5. What is the compound interest on Rs. 2000 for 3 years at 5% per annum, compounded annually?
A) Rs. 300
B) Rs. 307.50
C) Rs. 315.25
D) Rs. 320
6. A sum of money becomes Rs. 10,000 in 2 years and Rs. 12,000 in 3 years at compound interest. The principal is:
A) Rs. 8333.33
B) Rs. 8000
C) Rs. 8500
D) Rs. 9000
7. If the simple interest on a sum for 3 years is Rs. 750 and the compound interest for 2 years is Rs. 525, find the rate of interest.
A) 5%
B) 10%
C) 15%
D) 20%
8. What is the annual installment of a debt of Rs. 6600 due in 3 years at 10% compound interest?
A) Rs. 2000
B) Rs. 2200
C) Rs. 2420
D) Rs. 1800
9. A sum of money invested at compound interest amounts to Rs. 1650 in 1 year and Rs. 1815 in 2 years. The rate of interest is:
A) 10%
B) 15%
C) 12%
D) 5%
10. The difference between the CI and SI on a sum of money for 3 years at 10% per annum is Rs. 31. Find the sum.
A) Rs. 1000
B) Rs. 1500
C) Rs. 2000
D) Rs. 2500
11. What is the compound interest on Rs. 5000 for 1 year at 10% per annum, compounded semi-annually?
A) Rs. 500
B) Rs. 512.50
C) Rs. 525
D) Rs. 550
12. A sum of money triples itself in 5 years at compound interest. In how many years will it become 27 times itself?
A) 10 years
B) 15 years
C) 20 years
D) 25 years
13. If the compound interest on a sum for 2 years is Rs. 249 and the simple interest is Rs. 240, what is the principal?
A) Rs. 1000
B) Rs. 1200
C) Rs. 1500
D) Rs. 2000
14. A sum of money becomes Rs. 2100 in 2 years and Rs. 2310 in 3 years at compound interest. The rate of interest is:
A) 10%
B) 12%
C) 15%
D) 8%
15. What is the compound interest on Rs. 10000 for 3 years at 10% per annum, compounded annually?
A) Rs. 3000
B) Rs. 3300
C) Rs. 3310
D) Rs. 3100
16. A sum invested at compound interest amounts to Rs. 3840 in 1 year and Rs. 4608 in 2 years. The rate of interest is:
A) 20%
B) 25%
C) 15%
D) 10%
17. The difference between the compound interest and simple interest on Rs. 5000 for 2 years at 4% per annum is:
A) Rs. 40
B) Rs. 80
C) Rs. 32
D) Rs. 16
18. A sum of money doubles in 4 years at compound interest. In how many years will it become 16 times itself?
A) 12 years
B) 16 years
C) 20 years
D) 8 years
19. What is the principal amount if the compound interest is Rs. 410 for 2 years at 10% per annum, compounded annually?
A) Rs. 2000
B) Rs. 2500
C) Rs. 1800
D) Rs. 2200
20. A sum becomes Rs. 4000 in 1 year and Rs. 5500 in 2 years at compound interest. The rate of interest is:
A) 37.5%
B) 25%
C) 30%
D) 40%
21. If the compound interest on a sum for 2 years at 5% is Rs. 325, what is the simple interest on the same sum for 2 years at the same rate?
A) Rs. 300
B) Rs. 312.50
C) Rs. 320
D) Rs. 330
22. What is the compound interest on Rs. 1000 for 1.5 years at 10% per annum, compounded semi-annually?
A) Rs. 150
B) Rs. 152.50
C) Rs. 155
D) Rs. 157.50
23. A sum of money becomes Rs. 1000 in 2 years and Rs. 1200 in 3 years at compound interest. The sum is:
A) Rs. 833.33
B) Rs. 800
C) Rs. 850
D) Rs. 900
24. If the amount after 2 years is Rs. 14,400 and after 3 years is Rs. 17,280, find the principal at 20% compound interest.
A) Rs. 10,000
B) Rs. 11,000
C) Rs. 12,000
D) Rs. 12,500
25. What is the annual installment of a debt of Rs. 13200 due in 3 years at 10% compound interest?
A) Rs. 4000
B) Rs. 4400
C) Rs. 4840
D) Rs. 3630
26. A sum of money becomes Rs. 7290 in 3 years at 10% compound interest. What was the principal amount?
A) Rs. 5000
B) Rs. 5500
C) Rs. 6000
D) Rs. 6500
27. The difference between the CI and SI on a sum of money for 2 years at 15% per annum is Rs. 135. Find the sum.
A) Rs. 5000
B) Rs. 6000
C) Rs. 7000
D) Rs. 8000
28. Find the compound interest on Rs. 16,000 for 9 months at 20% per annum, compounded quarterly.
A) Rs. 2400
B) Rs. 2520
C) Rs. 2500
D) Rs. 2600
29. If a sum of money doubles in 7 years at compound interest, in how many years will it become 16 times itself?
A) 21 years
B) 28 years
C) 35 years
D) 42 years
30. The compound interest on a sum of money at a certain rate for 2 years is Rs. 50.50 and the simple interest on the same sum for 2 years at the same rate is Rs. 50. Find the principal amount.
A) Rs. 1000
B) Rs. 1010
C) Rs. 1020
D) Rs. 1050
31. A sum of money grows to Rs. 13,310 in 3 years at a certain rate of compound interest. If the principal was Rs. 10,000, what is the rate of interest?
A) 10%
B) 15%
C) 20%
D) 5%
32. What is the principal if the compound interest for 2 years is Rs. 210 and the simple interest for 2 years is Rs. 200?
A) Rs. 1000
B) Rs. 1500
C) Rs. 2000
D) Rs. 2500
33. A sum of money doubles in 10 years at compound interest. How many years will it take for the sum to become 4 times itself?
A) 15 years
B) 20 years
C) 25 years
D) 30 years
34. Calculate the compound interest on Rs. 3,000 at 7% per annum for 3 years.
A) Rs. 661.50
B) Rs. 650.10
C) Rs. 670.20
D) Rs. 680.50
35. If the interest is compounded quarterly, the rate and time period are adjusted as:
A) Rate = R/4, Time = 4T
B) Rate = R*4, Time = T/4
C) Rate = R/4, Time = T/4
D) Rate = R, Time = 4T
36. A sum of money at compound interest becomes Rs. 10,890 in 2 years and Rs. 11,979 in 3 years. The rate of interest is:
A) 10%
B) 12%
C) 11%
D) 9%
37. The difference between the compound interest and simple interest on Rs. 1,500 for 2 years at 5% per annum is:
A) Rs. 3.75
B) Rs. 7.50
C) Rs. 15.00
D) Rs. 37.50
38. What is the annual rate of interest if a principal of Rs. 10,000 amounts to Rs. 12,100 in 2 years, compounded annually?
A) 10%
B) 15%
C) 20%
D) 5%
39. If Rs. 8,000 is invested at 10% per annum compound interest, payable annually, what is the amount after 3 years?
A) Rs. 10,400
B) Rs. 10,648
C) Rs. 10,560
D) Rs. 10,800
40. A sum of money invested at compound interest amounts to Rs. 650 in 1 year and Rs. 750 in 2 years. The rate of interest per annum is:
A) 15.38%
B) 16.67%
C) 14.28%
D) 18.75%
41. The compound interest on a sum for 2 years is Rs. 249 and the simple interest is Rs. 240. Find the rate of interest.
A) 5%
B) 10%
C) 15%
D) 20%
42. What is the principal amount if the compound interest is Rs. 252 for 2 years at 10% per annum?
A) Rs. 1000
B) Rs. 1100
C) Rs. 1200
D) Rs. 1300
43. A sum of money becomes Rs. 961 in 2 years at compound interest. If the rate of interest is 10% per annum, what is the principal amount?
A) Rs. 700
B) Rs. 750
C) Rs. 800
D) Rs. 850
44. If the simple interest on a sum for 2 years at 5% per annum is Rs. 200, what is the compound interest on the same sum for 2 years at the same rate?
A) Rs. 200
B) Rs. 205
C) Rs. 210
D) Rs. 215
45. Find the compound interest on Rs. 20,000 for 1 year at 8% per annum, compounded semi-annually.
A) Rs. 1600
B) Rs. 1640
C) Rs. 1620
D) Rs. 1660
46. What is the formula for the amount (A) when interest is compounded annually?
A) A = P * (1 + R/100)^T
B) A = P * (1 - R/100)^T
C) A = P + (P * R * T / 100)
D) A = P / (1 + R/100)^T
47. The difference between the compound interest and the simple interest on a certain sum for 3 years at a certain rate is Rs. 155. If the rate is 10% per annum, find the sum.
A) Rs. 5000
B) Rs. 4000
C) Rs. 6000
D) Rs. 7500
48. A sum of money doubles itself in 5 years at compound interest. In how many years will it become 8 times itself?
A) 10 years
B) 15 years
C) 20 years
D) 25 years
49. In compound interest, if the interest is compounded half-yearly, what is the rate and time period used in the formula A = P(1 + r/100)^n?
A) Rate = R/2, Time = 2T
B) Rate = R, Time = T/2
C) Rate = R*2, Time = T/2
D) Rate = R/2, Time = T
50. Calculate the compound interest on Rs. 5,000 at 8% per annum for 2 years.
A) Rs. 800
B) Rs. 832
C) Rs. 400
D) Rs. 864