Compound interest questions Practice Question and Answer

Q:

A sum of Rs.13,000 is to be paid back in 2 equal annual instalments. How much is each instalment if the interest is compounded annually at 8 % per annum?

1025 0

  • 1
    Rs.7280
    Correct
    Wrong
  • 2
    Rs.7290
    Correct
    Wrong
  • 3
    Rs.7270
    Correct
    Wrong
  • 4
    Rs.7920
    Correct
    Wrong
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Answer : 2. "Rs.7290"

Q:

A sum borrowed under compound interest doubles itself in 10 years. When will it become fourfold of itself at the same rate of interest?

1013 0

  • 1
    15 years
    Correct
    Wrong
  • 2
    20 years
    Correct
    Wrong
  • 3
    24 years
    Correct
    Wrong
  • 4
    40 years
    Correct
    Wrong
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Answer : 2. "20 years"

Q:

The difference between the simple interest and the compound interest (compounded annually) at the rate of 12% per annum on Rs.5000 for 2 years will be 

1010 0

  • 1
    Rs.17.50
    Correct
    Wrong
  • 2
    Rs.36
    Correct
    Wrong
  • 3
    Rs.45
    Correct
    Wrong
  • 4
    Rs.72
    Correct
    Wrong
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Answer : 4. "Rs.72 "

Q:

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

1008 0

  • 1
    Correct
    Wrong
  • 2
    3
    Correct
    Wrong
  • 3
    2
    Correct
    Wrong
  • 4
    4
    Correct
    Wrong
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Answer : 3. "2"
Explanation :

We know that
$$ {A=P{(1+{r\over 100}})}^{t}$$

Putting the value we can get answer 

Q:

The compound interest on a certain sum of money invested for 2 years at 5 % per annum is Rs. 328. The simple interest on the sum, at the same rate and for the same period will be 

992 0

  • 1
    Rs . 320
    Correct
    Wrong
  • 2
    Rs . 308
    Correct
    Wrong
  • 3
    Rs . 300
    Correct
    Wrong
  • 4
    Rs . 287
    Correct
    Wrong
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Answer : 1. "Rs . 320 "

Q:

The compound interest on Rs.16, 000 for 9 months at 20 % per annum, interest being compounded quarterly, is

992 0

  • 1
    Rs. 2,520
    Correct
    Wrong
  • 2
    Rs. 2,524
    Correct
    Wrong
  • 3
    Rs. 2,522
    Correct
    Wrong
  • 4
    Rs. 2,518
    Correct
    Wrong
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Answer : 3. "Rs. 2,522 "

Q:

On a certain sum of money, the simple interest for 2 years is Rs. 350 at the rate of 4 % per annum. If it was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned? 

987 0

  • 1
    Rs. 14
    Correct
    Wrong
  • 2
    Rs. 35
    Correct
    Wrong
  • 3
    Rs. 3.50
    Correct
    Wrong
  • 4
    Rs. 7
    Correct
    Wrong
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Answer : 4. "Rs. 7 "

Q:

Find the compound interest on a sum of Rs. 46875 for 2 years at 12% p.a, if interest is compounded 8 months?

985 0

  • 1
    14174
    Correct
    Wrong
  • 2
    10174
    Correct
    Wrong
  • 3
    12174
    Correct
    Wrong
  • 4
    13174
    Correct
    Wrong
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Answer : 3. "12174 "

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