Compound interest questions Practice Question and Answer

Q: A sum of money at compound interest amounts to thrice itself in three years. In how many years will it be 81 times itself? 1194 0

  • 1
    27
    Correct
    Wrong
  • 2
    9
    Correct
    Wrong
  • 3
    12
    Correct
    Wrong
  • 4
    15
    Correct
    Wrong
  • 5
    None of these
    Correct
    Wrong
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Answer : 3. "12"

Q: What will be Compound interest on Rs 2000 at 20% per annum rate for 1 year and 6 months, if interest is compounded on half-yearly basis. 1230 0

  • 1
    Rs 665
    Correct
    Wrong
  • 2
    Rs 656
    Correct
    Wrong
  • 3
    Rs 662
    Correct
    Wrong
  • 4
    Rs 663
    Correct
    Wrong
  • 5
    None of these
    Correct
    Wrong
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Answer : 3. "Rs 662"
Explanation :

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Q: What would be the compound interest obtained on an amount of Rs.1250 at the rate of 8 percent per annum after 2 years? 2883 1

  • 1
    Rs.200
    Correct
    Wrong
  • 2
    Rs.208
    Correct
    Wrong
  • 3
    Rs.212
    Correct
    Wrong
  • 4
    Rs.220
    Correct
    Wrong
  • 5
    None of these
    Correct
    Wrong
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Answer : 2. "Rs.208"
Explanation :

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Q: What will be compound interest-on, a sum of Rs 1000 at die rate of 10 percent per annum after 5 year? 1204 0

  • 1
    Rs 610.51
    Correct
    Wrong
  • 2
    Rs 559.45
    Correct
    Wrong
  • 3
    Rs 665.50
    Correct
    Wrong
  • 4
    Rs 665.51
    Correct
    Wrong
  • 5
    None of these
    Correct
    Wrong
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Answer : 1. "Rs 610.51"
Explanation :

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Q: Find the compound interest on Rs.6250 at 12% per annum rate for one year if interest is calculated on half yearly basis. 2192 0

  • 1
    Rs 772.50
    Correct
    Wrong
  • 2
    Rs 772
    Correct
    Wrong
  • 3
    Rs 662
    Correct
    Wrong
  • 4
    Rs 663
    Correct
    Wrong
  • 5
    None of these
    Correct
    Wrong
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Answer : 1. "Rs 772.50"
Explanation :

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Q: Compounding interest means interest accrues 1537 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: What amount of compound interest can be obtained on the principal amount of Rs. 15800 at the rate of 6 percent per annum at the end of 2 years? 1993 0

  • 1
    Rs 1,896
    Correct
    Wrong
  • 2
    Rs.2012.48
    Correct
    Wrong
  • 3
    Rs. 1952.88
    Correct
    Wrong
  • 4
    Rs.1,956
    Correct
    Wrong
  • 5
    None of these
    Correct
    Wrong
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Answer : 3. "Rs. 1952.88"

Q: The simple interest accrued on an amount of Rs 15,000 at the end of three year is Rs 2,250. What would be the compound interest accrued on the same amount at the same rate in the same period? 1772 0

  • 1
    Rs 8934.6784
    Correct
    Wrong
  • 2
    Rs 8017.5744
    Correct
    Wrong
  • 3
    Rs 7861.8754
    Correct
    Wrong
  • 4
    Cannot be determined
    Correct
    Wrong
  • 5
    None of these
    Correct
    Wrong
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Answer : 5. "None of these"

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