Practice MCQ Questions and Answer on Compound Interest

1.

A sum becomes Rs. 2916 in 2 years at 8% per annum compound interest. The simple interest at 9% per annum for 3 years on the same amount will be = ?

  • (A) Rs. 600
  • (B) Rs. 675
  • (C) Rs. 650
  • (D) Rs. 625

2.

A sum of Rs 210 was taken as a loan. This is to be paid back in two equal installments. If the rate of interest be 10% compounded annually, then the value of each installment is = ?

  • (A) Rs. 127
  • (B) Rs. 121
  • (C) Rs. 210
  • (D) Rs. 225

3.

A sum of money is compound interest became doubles itself in 15 years. It will become eight times of itself in = ?

  • (A) 45 years
  • (B) 48 years
  • (C) 54 years
  • (D) 60 years

4.

The population of a city in 2014 was 8000000. If in 2015, there is an increment of 8%, in 2016, there is a decrement of 35% and in 2017, there is an increment of 65%, then what is the population of the city at the end of the year 2017?

  • (A) 8400278
  • (B) 9266400
  • (C) 7000000
  • (D) 9635535

5.

Richa took a loan of Rs. 1,20,000 for 1 year at 20% per annum, compounded quarterly. The amount that Richa has to pay after 1 year is:

  • (A) Rs. 1,45,861.75
  • (B) Rs. 1,45,860.75
  • (C) Rs. 1,45,863.75
  • (D) Rs. 1,45,862.75

6.

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

  • (A) 2
  • (B) $$2\frac{1}{2}$$
  • (C) 3
  • (D) 4

7.

Ramesh borrowed Rs. 1,20,000 interest free from Aman. If he pays back at 6.25% of this amount quarterly and has already paid Rs. 30,000, then for how many months does he need to pay back his loan for the rest of the amount?

  • (A) 36 months
  • (B) 24 months
  • (C) 42 months
  • (D) 38 months

8.

Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for Rs. 126100. This payment is to be made in three equal annual instalments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each instalment ?

  • (A) Rs. 45205
  • (B) Rs. 46305
  • (C) Rs. 47405
  • (D) Rs. 48505

9.

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

10.

The sum for 2 years given a compound interest of Rs. 3225 at 15% rate. Then the sum is = ?

  • (A) Rs. 10000
  • (B) Rs. 20000
  • (C) Rs. 15000
  • (D) Rs. 32250