Compound interest questions Practice Question and Answer

Q:

A sum of money is invested at 20 % compound interest (compounded annually). It would fetch 723 more if interest is compound half-yearly. The sum is –

1702 0

  • 1
    ₹ 20,000
    Correct
    Wrong
  • 2
    ₹ 7,500
    Correct
    Wrong
  • 3
    ₹ 72,300
    Correct
    Wrong
  • 4
    ₹ 30,000
    Correct
    Wrong
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Answer : 3. "₹ 72,300 "

Q:

What will be the compound interest on a sum of Rs. 21000 for 2 years at the rate of 14.28% per annum when interest is compound yearly?

1699 0

  • 1
    6428
    Correct
    Wrong
  • 2
    3162
    Correct
    Wrong
  • 3
    7129
    Correct
    Wrong
  • 4
    8231
    Correct
    Wrong
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Answer : 1. "6428"

Q:

Rs.4000 becomes Rs. 5000 in 4 years at a certain rate of compound interest. What will be the sum at the end of 12 years?

1696 0

  • 1
    Rs. 7712.50
    Correct
    Wrong
  • 2
    Rs. 7812.50
    Correct
    Wrong
  • 3
    Rs. 7612.50
    Correct
    Wrong
  • 4
    Rs. 7512.50
    Correct
    Wrong
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Answer : 2. "Rs. 7812.50"

Q: A certain sum amounts to Rs 1308 in 3 years, while it becomes Rs 1380 in 5 years. Find the principal. 1641 1

  • 1
    Rs 1100
    Correct
    Wrong
  • 2
    Rs 1200
    Correct
    Wrong
  • 3
    Rs 1300
    Correct
    Wrong
  • 4
    Rs 1400
    Correct
    Wrong
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Answer : 2. "Rs 1200"
Explanation :

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Q:

Mr. Duggal invested Rs. 20, 000 with rate of interest at 20 p.c.p.a. The interest was compounded half yearly for first year and in the next year it was compounded yearly. What will be the total interest earned at the end of two years? 

1614 0

  • 1
    Rs. 8,800
    Correct
    Wrong
  • 2
    Rs. 9,040
    Correct
    Wrong
  • 3
    Rs. 8,040
    Correct
    Wrong
  • 4
    Rs. 9,800
    Correct
    Wrong
  • 5
    None of these
    Correct
    Wrong
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Answer : 2. "Rs. 9,040"

Q:

The sum of length, breadth and height of a cuboid is 25 cm. The length of its diagonal is 15 cm. Find the total surface area of the cuboid.

1574 0

  • 1
    $$ {200 cm^2}$$
    Correct
    Wrong
  • 2
    $$ {400 cm^2}$$
    Correct
    Wrong
  • 3
    $$ {500 cm^2}$$
    Correct
    Wrong
  • 4
    $$ {600 cm^2}$$
    Correct
    Wrong
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Answer : 2. "$$ {400 cm^2}$$"

Q: Compounding interest means interest accrues 1534 1

  • 1
    at variable rates throughout the term
    Correct
    Wrong
  • 2
    more quickly than simple interest
    Correct
    Wrong
  • 3
    more slowly than simple interest
    Correct
    Wrong
  • 4
    at the same rate as simple interest
    Correct
    Wrong
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Answer : 2. "more quickly than simple interest"
Explanation :

Answer: B) more quickly than simple interest Explanation: Compounding interest means interest accrues on the interest charged and the principal amount each period the interest is charged. Compound interest is calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods minus one.The total initial amount of the loan is then subtracted from the resulting value. The formula for calculating compound interest is: [P (1 + i)n] – P = P [(1 + i)n – 1] (Where P = Principal, i = nominal annual interest rate in percentage terms, and n = number of compounding periods.) Take a three-year loan of Rs. 10,000 at an interest rate of 5% that compounds annually. What would be the amount of interest? In this case, it would be: Rs. 10,000 [(1 + 0.05)3] – 1 = 10,000 [1.157625 – 1] = Rs. 1,576.25.   How it grows ::

Q:

A principal increases by 21% over 2 years with compound interest. What will be the simple interest in 4 years at the same interest rate of Rs 1000?

1504 0

  • 1
    320
    Correct
    Wrong
  • 2
    350
    Correct
    Wrong
  • 3
    400
    Correct
    Wrong
  • 4
    420
    Correct
    Wrong
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Answer : 3. "400"

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