Compound Interest MCQs with Answers and Solutions for Competitive Exams

Question #201

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At what rate percent compound interest will Rs. 20000 amount to Rs. 22050 in 2 years?

A. 6%

B. 5%

C. 7%

D. 4%

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Correct Answer: Option B

Explanation:
20000(1+r)² = 22050 ⇒ (1+r)² = 1.1025 = (1.05)² ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #202

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The simple interest on a sum for 2 years at 10% is Rs. 800. The compound interest on the same sum for 2 years at 10% is:

A. Rs. 840

B. Rs. 800

C. Rs. 820

D. Rs. 860

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Correct Answer: Option A

Explanation:
P = 80000/(10×2) = 4000. CI = 4000[(1.1)² − 1] = 4000 × 0.21 = Rs. 840.

This question belongs to: Maths Compound Interest

Question #203

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A sum amounts to Rs. 1210 in 2 years and Rs. 1331 in 3 years at compound interest. Find the sum.

A. Rs. 1050

B. Rs. 1000

C. Rs. 900

D. Rs. 950

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Correct Answer: Option B

Explanation:
Rate = (1331/1210 − 1) × 100 = 10%. P = 1210 / (1.1)² = 1210 / 1.21 = 1000.

This question belongs to: Maths Compound Interest

Question #204

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The difference between CI and SI on Rs. 6400 for 2 years at 6.25% is:

A. Rs. 35

B. Rs. 30

C. Rs. 25

D. Rs. 20

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Correct Answer: Option C

Explanation:
6.25% = 1/16. D = P × (R/100)² = 6400 × (1/16)² = 6400 × 1/256 = Rs. 25.

This question belongs to: Maths Compound Interest

Question #205

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Find the compound interest on Rs. 12000 at 8% per annum for 1 year compounded half-yearly.

A. Rs. 960

B. Rs. 998.40

C. Rs. 988.80

D. Rs. 979.20

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Correct Answer: Option D

Explanation:
Half-yearly rate 4%, n=2. A = 12000 × (1.04)² = 12000 × 1.0816 = 12979.20, CI = 12979.20 − 12000 = Rs. 979.20.

This question belongs to: Maths Compound Interest

Question #206

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In how many years will Rs. 1000 amount to Rs. 1157.625 at 5% per annum compound interest?

A. 3 years

B. 2 years

C. 3.5 years

D. 2.5 years

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Correct Answer: Option A

Explanation:
1000(1.05)^t = 1157.625 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #207

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The difference between CI and SI on a sum for 2 years at 8% is Rs. 64. The sum is:

A. Rs. 8000

B. Rs. 11000

C. Rs. 10000

D. Rs. 9000

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Correct Answer: Option C

Explanation:
D = P × 0.0064 = 64 ⇒ P = 10000.

This question belongs to: Maths Compound Interest

Question #208

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A sum of money at compound interest doubles in 4 years. In how many years will it become 8 times?

A. 10 years

B. 12 years

C. 20 years

D. 16 years

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Correct Answer: Option B

Explanation:
2 times in 4 years, 8 = 2³ ⇒ 4 × 3 = 12 years.

This question belongs to: Maths Compound Interest

Question #209

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The compound interest on Rs. 16000 at 10% per annum for 1.5 years compounded half-yearly is:

A. Rs. 2662

B. Rs. 2522

C. Rs. 2400

D. Rs. 2600

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Correct Answer: Option B

Explanation:
Half-yearly rate 5%, n=3. A = 16000 × (1.05)³ = 16000 × 1.157625 = 18522, CI = 18522 − 16000 = 2522.

This question belongs to: Maths Compound Interest

Question #210

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What sum will produce Rs. 410 as compound interest in 2 years at 5% per annum?

A. Rs. 3800

B. Rs. 4400

C. Rs. 4200

D. Rs. 4000

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Correct Answer: Option D

Explanation:
P = 410 / [(1.05)² − 1] = 410 / 0.1025 = 4000.

This question belongs to: Maths Compound Interest

Question #211

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The compound interest on a sum for 2 years at 10% compounded half-yearly is Rs. 215.50. The sum is:

A. Rs. 950

B. Rs. 1050

C. Rs. 1000

D. Rs. 900

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Correct Answer: Option C

Explanation:
Half-yearly rate 5%, n=4. CI = P[(1.05)⁴ − 1] = P × 0.21550625 = 215.50 ⇒ P = 215.50 / 0.21550625 = 1000.

This question belongs to: Maths Compound Interest

Question #212

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At what rate percent compound interest will Rs. 1000 become Rs. 1728 in 3 years?

A. 20%

B. 25%

C. 15%

D. 18%

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Correct Answer: Option A

Explanation:
1000(1+r)³ = 1728 ⇒ (1+r)³ = 1.728 = (1.2)³ ⇒ r = 20%.

This question belongs to: Maths Compound Interest

Question #213

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The difference between CI and SI on Rs. 2400 for 2 years at 5% is:

A. Rs. 7.20

B. Rs. 4.80

C. Rs. 5.00

D. Rs. 6.00

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Correct Answer: Option D

Explanation:
D = 2400 × (0.05)² = 2400 × 0.0025 = Rs. 6.

This question belongs to: Maths Compound Interest

Question #214

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A sum of money at compound interest becomes 2.25 times in 2 years. In how many years will it become 5.0625 times?

A. 4 years

B. 3 years

C. 6 years

D. 5 years

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Correct Answer: Option A

Explanation:
2.25 = (1.5)², so rate 50%. 5.0625 = 2.25², so 4 years. Or 2.25 times in 2 years, 5.0625 = (2.25)², so time 2×2=4.

This question belongs to: Maths Compound Interest

Question #215

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Find the compound interest on Rs. 75000 at 10% per annum for 2 years.

A. Rs. 16500

B. Rs. 17250

C. Rs. 15750

D. Rs. 18000

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Correct Answer: Option C

Explanation:
A = 75000 × (1.1)² = 75000 × 1.21 = 90750, CI = 90750 − 75000 = Rs. 15750.

This question belongs to: Maths Compound Interest

Question #216

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The effective annual rate for 12% per annum compounded half-yearly is:

A. 12.60%

B. 12.36%

C. 12.25%

D. 12.50%

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Correct Answer: Option B

Explanation:
Effective = (1.06)² − 1 = 1.1236 − 1 = 12.36%.

This question belongs to: Maths Compound Interest

Question #217

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In how many years will Rs. 5000 become Rs. 5618 at 6% compound interest?

A. 1.5 years

B. 2.5 years

C. 2 years

D. 3 years

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Correct Answer: Option C

Explanation:
5000(1.06)^t = 5618 ⇒ (1.06)^t = 1.1236 = (1.06)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #218

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The difference between CI and SI on Rs. 15000 for 2 years at 10% is:

A. Rs. 140

B. Rs. 120

C. Rs. 130

D. Rs. 150

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Correct Answer: Option D

Explanation:
D = 15000 × 0.01 = Rs. 150.

This question belongs to: Maths Compound Interest

Question #219

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A sum of money doubles in 6 years at compound interest. In how many years will it become 8 times?

A. 16 years

B. 14 years

C. 12 years

D. 18 years

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Correct Answer: Option D

Explanation:
2³ = 8, so 6 × 3 = 18 years.

This question belongs to: Maths Compound Interest

Question #220

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The compound interest on Rs. 3300 at 10% per annum for 2 years is:

A. Rs. 726

B. Rs. 780

C. Rs. 750

D. Rs. 693

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Correct Answer: Option D

Explanation:
A = 3300 × (1.1)² = 3300 × 1.21 = 3993, CI = 3993 − 3300 = Rs. 693.

This question belongs to: Maths Compound Interest

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