Practice MCQ Questions and Answer on Compound Interest

1.

A sum of money after a period of 2 years becomes Rs. 34,560, and it becomes Rs. 41,472 after a period of three years, being compounded at 'R' rate of interest. What is the value of R?

  • (A) 20%
  • (B) 12%
  • (C) 25%
  • (D) 10%

2.

A sum of money invested at compound interest amounts to Rs. 650 at the end of first year and Rs. 676 at the end of second year. The sum of money is = ?

  • (A) Rs. 600
  • (B) Rs. 540
  • (C) Rs. 625
  • (D) Rs. 560

3.

At a certain rate per annum, the simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80. The rate of interest per annum is = ?

  • (A) 4%
  • (B) 6%
  • (C) 8%
  • (D) 10%

4.

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%

5.

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

6.

The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is = ?

  • (A) Rs. 520
  • (B) Rs. 550
  • (C) Rs. 500
  • (D) Rs. 515

7.

The principal which will amounts to Rs. 270.40 in 2 years at the rate of 4% per annum compound interest, is = ?

  • (A) Rs. 200
  • (B) Rs. 225
  • (C) Rs. 250
  • (D) Rs. 220

8.

A sum of Rs. 13360 was borrowed at 834 % per annum compound interest and paid back in two years in two equal annual installments. What was the amount of each installment ?

  • (A) Rs. 5769
  • (B) Rs. 7569
  • (C) Rs. 7009
  • (D) Rs. 7500

9.

A certain loan was returned in two equal half yearly installments each of Rs. 6760. If the rate of interest was 8% p.a. compounded yearly, how much was the interest paid on the loan?

  • (A) Rs. 790
  • (B) Rs. 770
  • (C) Rs. 750
  • (D) Rs. 810

10.

The compound interest on Rs. 4,000 after 3 year is Rs. 630.50. Then the rate of interest compounded yearly is:

  • (A) 7%
  • (B) 5%
  • (C) 8%
  • (D) 6%