Compound Interest MCQs with Answers and Solutions for Competitive Exams

Question #241

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Find the compound interest on Rs. 17500 at 8% per annum for 2 years.

A. Rs. 2912

B. Rs. 2968

C. Rs. 2940

D. Rs. 3000

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Correct Answer: Option A

Explanation:
A = 17500 × 1.1664 = 20412, CI = 20412 − 17500 = Rs. 2912.

This question belongs to: Maths Compound Interest

Question #242

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The effective annual rate for 10% per annum compounded quarterly is:

A. 10.25%

B. 10.47%

C. 10.50%

D. 10.38%

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Correct Answer: Option D

Explanation:
Quarterly rate 2.5%, (1.025)⁴ = 1.10381289, effective ≈ 10.38%.

This question belongs to: Maths Compound Interest

Question #243

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In how many years will Rs. 6000 amount to Rs. 7260 at 10% per annum compound interest?

A. 1.5 years

B. 2 years

C. 3 years

D. 2.5 years

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Correct Answer: Option B

Explanation:
6000(1.1)^t = 7260 ⇒ (1.1)^t = 1.21 ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #244

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The difference between CI and SI on Rs. 8800 for 2 years at 5% is:

A. Rs. 20

B. Rs. 22

C. Rs. 18

D. Rs. 24

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Correct Answer: Option B

Explanation:
D = 8800 × 0.0025 = Rs. 22.

This question belongs to: Maths Compound Interest

Question #245

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A sum of money at compound interest becomes 3 times in 6 years. In how many years will it become 27 times?

A. 24 years

B. 15 years

C. 18 years

D. 12 years

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Correct Answer: Option C

Explanation:
3³ = 27, so 6 × 3 = 18 years.

This question belongs to: Maths Compound Interest

Question #246

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The compound interest on Rs. 5500 at 10% per annum for 2 years is:

A. Rs. 1210

B. Rs. 1320

C. Rs. 1265

D. Rs. 1155

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Correct Answer: Option D

Explanation:
A = 5500 × 1.21 = 6655, CI = 6655 − 5500 = Rs. 1155.

This question belongs to: Maths Compound Interest

Question #247

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What sum will produce Rs. 204 as compound interest in 2 years at 4% per annum?

A. Rs. 2500

B. Rs. 2400

C. Rs. 2700

D. Rs. 2600

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Correct Answer: Option A

Explanation:
P = 204 / 0.0816 = 2500.

This question belongs to: Maths Compound Interest

Question #248

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At what rate percent compound interest will Rs. 3200 amount to Rs. 3872 in 2 years?

A. 8%

B. 10%

C. 12%

D. 15%

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Correct Answer: Option B

Explanation:
3200(1+r)² = 3872 ⇒ (1+r)² = 1.21 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

Question #249

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The simple interest on a sum for 2 years at 6% is Rs. 720. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 756.00

B. Rs. 748.80

C. Rs. 763.20

D. Rs. 741.60

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Correct Answer: Option D

Explanation:
P = 72000/(6×2) = 6000. CI = 6000 × 0.1236 = Rs. 741.60.

This question belongs to: Maths Compound Interest

Question #250

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A sum of money amounts to Rs. 10404 in 2 years at 2% compound interest. Find the sum.

A. Rs. 9900

B. Rs. 10000

C. Rs. 9800

D. Rs. 10100

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Correct Answer: Option B

Explanation:
P = 10404 / (1.02)² = 10404 / 1.0404 = 10000.

This question belongs to: Maths Compound Interest

Question #251

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The difference between CI and SI on Rs. 12500 for 2 years at 4% is:

A. Rs. 22

B. Rs. 16

C. Rs. 18

D. Rs. 20

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Correct Answer: Option D

Explanation:
D = 12500 × 0.0016 = Rs. 20.

This question belongs to: Maths Compound Interest

Question #252

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A sum of money at compound interest doubles in 5 years. In how many years will it become 16 times?

A. 25 years

B. 20 years

C. 18 years

D. 15 years

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Correct Answer: Option B

Explanation:
16 = 2⁴, so 5 × 4 = 20 years.

This question belongs to: Maths Compound Interest

Question #253

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The compound interest on Rs. 6000 at 5% per annum for 2 years is:

A. Rs. 600

B. Rs. 630

C. Rs. 615

D. Rs. 645

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Correct Answer: Option C

Explanation:
A = 6000 × 1.1025 = 6615, CI = 6615 − 6000 = Rs. 615.

This question belongs to: Maths Compound Interest

Question #254

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Find the amount on Rs. 8000 at 10% per annum compound interest for 3 years.

A. Rs. 10800

B. Rs. 11200

C. Rs. 11000

D. Rs. 10648

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Correct Answer: Option D

Explanation:
A = 8000 × (1.1)³ = 8000 × 1.331 = 10648.

This question belongs to: Maths Compound Interest

Question #255

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The effective rate of interest for 8% per annum compounded half-yearly is:

A. 8.08%

B. 8.16%

C. 8.24%

D. 8.30%

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Correct Answer: Option B

Explanation:
Effective = (1.04)² − 1 = 1.0816 − 1 = 8.16%.

This question belongs to: Maths Compound Interest

Question #256

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In how many years will Rs. 1200 amount to Rs. 1389.15 at 5% compound interest?

A. 3.5 years

B. 2.5 years

C. 3 years

D. 2 years

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Correct Answer: Option C

Explanation:
1200(1.05)^t = 1389.15 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #257

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The difference between CI and SI on Rs. 1000 for 2 years at 10% is:

A. Rs. 8

B. Rs. 9

C. Rs. 11

D. Rs. 10

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Correct Answer: Option D

Explanation:
D = 1000 × 0.01 = Rs. 10.

This question belongs to: Maths Compound Interest

Question #258

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A sum of money at compound interest becomes 8 times in 3 years. In how many years will it become 64 times?

A. 6 years

B. 5 years

C. 9 years

D. 4 years

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Correct Answer: Option A

Explanation:
8 times in 3 years, 64 = 8² ⇒ 3 × 2 = 6 years.

This question belongs to: Maths Compound Interest

Question #259

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The compound interest on Rs. 9500 at 8% per annum for 2 years is:

A. Rs. 1595

B. Rs. 1588

C. Rs. 1580.80

D. Rs. 1576

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Correct Answer: Option C

Explanation:
A = 9500 × (1.08)² = 9500 × 1.1664 = 11080.80, CI = 11080.80 − 9500 = Rs. 1580.80.

This question belongs to: Maths Compound Interest

Question #260

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What sum will amount to Rs. 1210 in 2 years at 10% per annum compound interest?

A. Rs. 1000

B. Rs. 900

C. Rs. 1100

D. Rs. 1200

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Correct Answer: Option A

Explanation:
P = 1210 / (1.1)² = 1210 / 1.21 = 1000.

This question belongs to: Maths Compound Interest

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