Compound Interest MCQs with Answers and Solutions for Competitive Exams

Question #221

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What sum will amount to Rs. 13310 in 3 years at 10% per annum compound interest?

A. Rs. 9000

B. Rs. 9500

C. Rs. 10500

D. Rs. 10000

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Correct Answer: Option D

Explanation:
P = 13310 / (1.1)³ = 13310 / 1.331 = 10000.

This question belongs to: Maths Compound Interest

Question #222

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Find the compound interest on Rs. 5000 at 10% per annum compounded half-yearly for 1 year.

A. Rs. 550

B. Rs. 512.50

C. Rs. 500

D. Rs. 525

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Correct Answer: Option B

Explanation:
Half-yearly rate 5%, n=2. A = 5000 × (1.05)² = 5000 × 1.1025 = 5512.50, CI = 5512.50 − 5000 = Rs. 512.50.

This question belongs to: Maths Compound Interest

Question #223

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At what rate percent compound interest will Rs. 4000 amount to Rs. 4630.50 in 3 years?

A. 7%

B. 4%

C. 5%

D. 6%

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Correct Answer: Option C

Explanation:
4000(1+r)³ = 4630.50 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #224

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The simple interest on a sum for 2 years at 8% is Rs. 640. The compound interest on the same sum for 2 years at 8% is:

A. Rs. 678.40

B. Rs. 665.60

C. Rs. 672.00

D. Rs. 684.00

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Correct Answer: Option B

Explanation:
P = 64000/(8×2) = 4000. CI = 4000[(1.08)² − 1] = 4000 × 0.1664 = Rs. 665.60.

This question belongs to: Maths Compound Interest

Question #225

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A sum of money at compound interest amounts to Rs. 11520 in 2 years and Rs. 13824 in 3 years. Find the sum.

A. Rs. 7000

B. Rs. 7500

C. Rs. 8500

D. Rs. 8000

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Correct Answer: Option D

Explanation:
Rate = (13824/11520 − 1) × 100 = 20%. P = 11520 / (1.2)² = 11520 / 1.44 = 8000.

This question belongs to: Maths Compound Interest

Question #226

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The difference between CI and SI on Rs. 5600 for 2 years at 5% is:

A. Rs. 12

B. Rs. 18

C. Rs. 14

D. Rs. 16

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Correct Answer: Option C

Explanation:
D = 5600 × 0.0025 = Rs. 14.

This question belongs to: Maths Compound Interest

Question #227

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A sum of money at compound interest becomes 3 times in 4 years. In how many years will it become 9 times?

A. 8 years

B. 10 years

C. 6 years

D. 12 years

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Correct Answer: Option A

Explanation:
3 times in 4 years, 9=3² ⇒ 4×2=8 years.

This question belongs to: Maths Compound Interest

Question #228

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The compound interest on Rs. 11000 at 10% per annum for 2 years is:

A. Rs. 2200

B. Rs. 2420

C. Rs. 2530

D. Rs. 2310

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Correct Answer: Option D

Explanation:
A = 11000 × 1.21 = 13310, CI = 13310 − 11000 = Rs. 2310.

This question belongs to: Maths Compound Interest

Question #229

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Find the compound interest on Rs. 4500 at 8% per annum for 1 year compounded half-yearly.

A. Rs. 380

B. Rs. 367.20

C. Rs. 360

D. Rs. 374.40

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Correct Answer: Option B

Explanation:
Half-yearly rate 4%, n=2. A = 4500 × (1.04)² = 4500 × 1.0816 = 4867.20, CI = 4867.20 − 4500 = Rs. 367.20.

This question belongs to: Maths Compound Interest

Question #230

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The effective rate of interest for 4% per annum compounded half-yearly is:

A. 4.20%

B. 4.16%

C. 4.04%

D. 4.08%

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Correct Answer: Option C

Explanation:
Effective = (1.02)² − 1 = 1.0404 − 1 = 4.04%.

This question belongs to: Maths Compound Interest

Question #231

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In how many years will Rs. 2500 amount to Rs. 3025 at 10% per annum compound interest?

A. 3 years

B. 1.5 years

C. 2 years

D. 2.5 years

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Correct Answer: Option C

Explanation:
2500(1.1)^t = 3025 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #232

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The difference between CI and SI on Rs. 7200 for 2 years at 10% is:

A. Rs. 72

B. Rs. 60

C. Rs. 68

D. Rs. 80

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Correct Answer: Option A

Explanation:
D = 7200 × 0.01 = Rs. 72.

This question belongs to: Maths Compound Interest

Question #233

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A sum of money at compound interest doubles in 9 years. In how many years will it become 4 times?

A. 15 years

B. 18 years

C. 21 years

D. 12 years

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Correct Answer: Option B

Explanation:
4 = 2², so 9 × 2 = 18 years.

This question belongs to: Maths Compound Interest

Question #234

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The compound interest on Rs. 9600 at 10% per annum for 1 year compounded half-yearly is:

A. Rs. 984

B. Rs. 1008

C. Rs. 960

D. Rs. 1020

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Correct Answer: Option A

Explanation:
Half-yearly rate 5%, n=2. A = 9600 × 1.1025 = 10584, CI = 10584 − 9600 = Rs. 984.

This question belongs to: Maths Compound Interest

Question #235

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What sum will amount to Rs. 1323 in 2 years at 5% compound interest?

A. Rs. 1300

B. Rs. 1250

C. Rs. 1200

D. Rs. 1150

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Correct Answer: Option C

Explanation:
P = 1323 / 1.1025 = 1200.

This question belongs to: Maths Compound Interest

Question #236

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The compound interest on a sum for 3 years at 10% is Rs. 993. The sum is:

A. Rs. 3600

B. Rs. 3300

C. Rs. 2700

D. Rs. 3000

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Correct Answer: Option D

Explanation:
CI = P[(1.1)³ − 1] = P × 0.331 = 993 ⇒ P = 993 / 0.331 = 3000.

This question belongs to: Maths Compound Interest

Question #237

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At what rate percent compound interest will Rs. 800 amount to Rs. 968 in 2 years?

A. 10%

B. 8%

C. 12%

D. 15%

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Correct Answer: Option A

Explanation:
800(1+r)² = 968 ⇒ (1+r)² = 1.21 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

Question #238

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The simple interest on a sum for 3 years at 5% is Rs. 375. The compound interest on the same sum for 2 years at 5% is:

A. Rs. 260

B. Rs. 250

C. Rs. 256.25

D. Rs. 262.50

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Correct Answer: Option C

Explanation:
P = 37500/(5×3) = 2500. CI = 2500[(1.05)² − 1] = 2500 × 0.1025 = Rs. 256.25.

This question belongs to: Maths Compound Interest

Question #239

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A sum of money at compound interest becomes Rs. 6050 in 2 years and Rs. 6655 in 3 years. Find the rate.

A. 8%

B. 15%

C. 12%

D. 10%

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Correct Answer: Option D

Explanation:
Rate = (6655/6050 − 1)×100 = 10%.

This question belongs to: Maths Compound Interest

Question #240

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The difference between CI and SI on Rs. 4800 for 2 years at 7.5% is:

A. Rs. 27

B. Rs. 24

C. Rs. 30

D. Rs. 33

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Correct Answer: Option A

Explanation:
7.5% = 3/40. D = 4800 × (3/40)² = 4800 × 9/1600 = 27.

This question belongs to: Maths Compound Interest

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