Compound Interest MCQs with Answers and Solutions for Competitive Exams

Question #41

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Find the amount of Rs. 5000 at compound interest for 3 years at 4% per annum.

A. Rs. 5600

B. Rs. 5648

C. Rs. 5624.32

D. Rs. 5660

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Correct Answer: Option C

Explanation:
A = 5000 × (1.04)³ = 5000 × 1.124864 = 5624.32.

This question belongs to: Maths Compound Interest

Question #42

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The compound interest on a sum for 2 years at 8% per annum is Rs. 332.80. Find the sum.

A. Rs. 1900

B. Rs. 2200

C. Rs. 2100

D. Rs. 2000

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Correct Answer: Option D

Explanation:
CI = P[(1.08)² − 1] = P × 0.1664 = 332.80 ⇒ P = 332.80 / 0.1664 = 2000.

This question belongs to: Maths Compound Interest

Question #43

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A sum becomes Rs. 6615 in 2 years and Rs. 6945.75 in 3 years at compound interest. Find the sum.

A. Rs. 5800

B. Rs. 6000

C. Rs. 6200

D. Rs. 6400

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Correct Answer: Option B

Explanation:
Rate = (6945.75/6615 − 1) × 100 = 5%. P = 6615 / (1.05)² = 6615 / 1.1025 = 6000.

This question belongs to: Maths Compound Interest

Question #44

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Find the compound interest on Rs. 10000 at 10% per annum for 1 year compounded half-yearly.

A. Rs. 1050

B. Rs. 1100

C. Rs. 1000

D. Rs. 1025

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Correct Answer: Option D

Explanation:
Half-yearly rate = 5%, n = 2. A = 10000 × (1.05)² = 10000 × 1.1025 = 11025, CI = 11025 − 10000 = Rs. 1025.

This question belongs to: Maths Compound Interest

Question #45

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The compound interest on Rs. 4000 for 3 years at 10% per annum is:

A. Rs. 1300

B. Rs. 1200

C. Rs. 1260

D. Rs. 1324

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Correct Answer: Option D

Explanation:
A = 4000 × (1.1)³ = 4000 × 1.331 = 5324, CI = 5324 − 4000 = Rs. 1324.

This question belongs to: Maths Compound Interest

Question #46

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At what rate of compound interest will Rs. 625 amount to Rs. 676 in 2 years?

A. 6%

B. 4%

C. 3%

D. 5%

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Correct Answer: Option B

Explanation:
625(1 + r)² = 676 ⇒ (1+r)² = 1.0816 = (1.04)² ⇒ r = 4%.

This question belongs to: Maths Compound Interest

Question #47

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In how many years will a sum of Rs. 2000 amount to Rs. 2662 at 10% per annum compound interest?

A. 5 years

B. 4 years

C. 3 years

D. 2 years

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Correct Answer: Option C

Explanation:
2000 × (1.1)^t = 2662 ⇒ (1.1)^t = 1.331 = (1.1)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #48

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The difference between CI and SI on Rs. 10000 for 2 years at 10% per annum is:

A. Rs. 90

B. Rs. 110

C. Rs. 120

D. Rs. 100

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Correct Answer: Option D

Explanation:
Difference = P × (R/100)² = 10000 × 0.01 = Rs. 100.

This question belongs to: Maths Compound Interest

Question #49

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

A. 7 years

B. 8 years

C. 6 years

D. 5 years

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Correct Answer: Option C

Explanation:
3 times in 3 years; 9 = 3², so time = 3 × 2 = 6 years.

This question belongs to: Maths Compound Interest

Question #50

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What will be the compound interest on Rs. 1200 at 10% per annum for 2 years?

A. Rs. 240

B. Rs. 252

C. Rs. 276

D. Rs. 264

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Correct Answer: Option B

Explanation:
A = 1200 × (1.1)² = 1200 × 1.21 = 1452, CI = 1452 − 1200 = Rs. 252.

This question belongs to: Maths Compound Interest

Question #51

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The present population of a town is 44100. If it increases at 5% per annum, what was the population 2 years ago?

A. 43000

B. 40000

C. 41000

D. 42000

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Correct Answer: Option B

Explanation:
Population 2 years ago = 44100 / (1.05)² = 44100 / 1.1025 = 40000.

This question belongs to: Maths Compound Interest

Question #52

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A machine depreciates at 10% per annum. Its present value is Rs. 7290. What was its value 3 years ago?

A. Rs. 11000

B. Rs. 13000

C. Rs. 10000

D. Rs. 12000

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Correct Answer: Option C

Explanation:
Value 3 years ago = 7290 / (0.9)³ = 7290 / 0.729 = 10000.

This question belongs to: Maths Compound Interest

Question #53

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The simple interest on a sum for 2 years at 6% is Rs. 360. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 372.60

B. Rs. 370.80

C. Rs. 378.00

D. Rs. 375.20

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Correct Answer: Option A

Explanation:
SI = P × 6 × 2 /100 = 0.12P = 360 ⇒ P = 3000. CI = 3000[(1.06)² − 1] = 3000 × 0.1236 = Rs. 370.80. Wait 3000*0.1236 = 370.80. So answer A. I'll correct: A. I'll check: 1.06^2=1.1236, minus 1 = 0.1236, *3000 = 370.80. So option A. I'll set A. So I'll have correct answer A. Options: 370.80, 372.60, 375.20, 378.00. So answer A. I'll adjust accordingly.

This question belongs to: Maths Compound Interest

Question #54

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A sum of money amounts to Rs. 4840 in 2 years and Rs. 5324 in 3 years at compound interest. Find the rate.

A. 8%

B. 15%

C. 12%

D. 10%

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Correct Answer: Option D

Explanation:
Rate = (5324/4840 − 1) × 100 = (1.1 − 1) × 100 = 10%.

This question belongs to: Maths Compound Interest

Question #55

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The compound interest on Rs. 12500 at 8% per annum for 1 year compounded half-yearly is:

A. Rs. 1060

B. Rs. 1020

C. Rs. 1040

D. Rs. 1000

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Correct Answer: Option B

Explanation:
Half-yearly rate = 4%, n=2. A = 12500 × (1.04)² = 12500 × 1.0816 = 13520, CI = 13520 − 12500 = Rs. 1020.

This question belongs to: Maths Compound Interest

Question #56

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What is the principal if the amount after 2 years at 10% compound interest is Rs. 12100?

A. Rs. 10000

B. Rs. 11000

C. Rs. 12000

D. Rs. 13000

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Correct Answer: Option A

Explanation:
P = 12100 / (1.1)² = 12100 / 1.21 = 10000.

This question belongs to: Maths Compound Interest

Question #57

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The compound interest on a sum for 2 years at 5% is Rs. 205. Find the sum.

A. Rs. 2100

B. Rs. 2200

C. Rs. 1900

D. Rs. 2000

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Correct Answer: Option D

Explanation:
CI = P[(1.05)² − 1] = P × 0.1025 = 205 ⇒ P = 2000.

This question belongs to: Maths Compound Interest

Question #58

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The difference between compound interest and simple interest on a sum for 2 years at 10% is Rs. 50. The sum is:

A. Rs. 5500

B. Rs. 4500

C. Rs. 6000

D. Rs. 5000

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Correct Answer: Option D

Explanation:
D = P × (10/100)² = P × 0.01 = 50 ⇒ P = 5000.

This question belongs to: Maths Compound Interest

Question #59

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At what rate per annum compound interest will Rs. 1000 become Rs. 1102.50 in 2 years?

A. 6%

B. 8%

C. 4%

D. 5%

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Correct Answer: Option D

Explanation:
1000(1+r)² = 1102.50 ⇒ (1+r)² = 1.1025 ⇒ 1+r = 1.05 ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #60

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A sum doubles in 5 years at compound interest. In how many years will it become 4 times?

A. 12 years

B. 10 years

C. 8 years

D. 15 years

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Correct Answer: Option B

Explanation:
Doubles in 5 years, so quadruple (2²) in 5 × 2 = 10 years.

This question belongs to: Maths Compound Interest

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