Compound Interest MCQs with Answers and Solutions for Competitive Exams

Question #81

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At what rate percent will a sum of Rs. 4000 amount to Rs. 4410 in 2 years at compound interest?

A. 6%

B. 8%

C. 5%

D. 4%

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Correct Answer: Option C

Explanation:
4000(1+r)² = 4410 ⇒ (1+r)² = 1.1025 = (1.05)² ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #82

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The compound interest on a sum for 2 years at 10% is Rs. 420. The sum is:

A. Rs. 2100

B. Rs. 1900

C. Rs. 1800

D. Rs. 2000

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Correct Answer: Option D

Explanation:
CI = P[(1.1)² − 1] = 0.21P = 420 ⇒ P = 2000.

This question belongs to: Maths Compound Interest

Question #83

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A sum of money becomes 1.44 times in 2 years at compound interest. The rate of interest is:

A. 20%

B. 18%

C. 22%

D. 24%

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Correct Answer: Option A

Explanation:
(1+r)² = 1.44 ⇒ 1+r = 1.2 ⇒ r = 20%.

This question belongs to: Maths Compound Interest

Question #84

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Find the compound interest on Rs. 1500 at 10% per annum for 2 years.

A. Rs. 315

B. Rs. 300

C. Rs. 330

D. Rs. 310

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Correct Answer: Option A

Explanation:
A = 1500 × (1.1)² = 1500 × 1.21 = 1815, CI = 1815 − 1500 = Rs. 315.

This question belongs to: Maths Compound Interest

Question #85

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In what time will Rs. 5000 amount to Rs. 6050 at 10% per annum compound interest?

A. 2 years

B. 4 years

C. 3 years

D. 1 year

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Correct Answer: Option A

Explanation:
5000(1.1)^t = 6050 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #86

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Find the compound interest on Rs. 2500 at 8% per annum compounded half-yearly for 1 year.

A. Rs. 212

B. Rs. 208

C. Rs. 204

D. Rs. 200

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Correct Answer: Option C

Explanation:
Half-yearly rate = 4%, n=2. A = 2500 × (1.04)² = 2500 × 1.0816 = 2704, CI = 2704 − 2500 = Rs. 204.

This question belongs to: Maths Compound Interest

Question #87

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A sum amounts to Rs. 2662 in 3 years at 10% compound interest. The sum is:

A. Rs. 2400

B. Rs. 2000

C. Rs. 2200

D. Rs. 1800

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Correct Answer: Option B

Explanation:
P = 2662 / (1.1)³ = 2662 / 1.331 = 2000.

This question belongs to: Maths Compound Interest

Question #88

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The difference between compound interest and simple interest on a sum for 2 years at 8% is Rs. 32. The sum is:

A. Rs. 5000

B. Rs. 4000

C. Rs. 4500

D. Rs. 5500

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Correct Answer: Option A

Explanation:
D = P × (0.08)² = P × 0.0064 = 32 ⇒ P = 5000.

This question belongs to: Maths Compound Interest

Question #89

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What is the effective rate of interest corresponding to 12% per annum compounded half-yearly?

A. 12.50%

B. 12.25%

C. 12.36%

D. 12.60%

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Correct Answer: Option C

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

This question belongs to: Maths Compound Interest

Question #90

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The compound interest on Rs. 10000 for 1 year at 4% per annum compounded half-yearly is:

A. Rs. 400

B. Rs. 408

C. Rs. 412

D. Rs. 404

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Correct Answer: Option D

Explanation:
Half-yearly rate = 2%, n=2. A = 10000 × (1.02)² = 10000 × 1.0404 = 10404, CI = 10404 − 10000 = Rs. 404.

This question belongs to: Maths Compound Interest

Question #91

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A sum of money at compound interest becomes Rs. 7396 in 2 years and Rs. 7950.70 in 3 years. Find the sum.

A. Rs. 6500

B. Rs. 6000

C. Rs. 6400

D. Rs. 6250

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Correct Answer: Option C

Explanation:
Rate = (7950.70/7396 - 1)*100 = 7.5%? 7950.70/7396 = 1.075, so 7.5%. P = 7396 / (1.075)² = 7396 / 1.155625 = 6400 exactly. Check: 1.075^2 = 1.155625, 6400*1.155625 = 7396. So answer 6400.

This question belongs to: Maths Compound Interest

Question #92

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Find the compound interest on Rs. 2000 at 4% per annum for 1 year compounded quarterly.

A. Rs. 83.00

B. Rs. 80.80

C. Rs. 82.40

D. Rs. 81.21

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Correct Answer: Option D

Explanation:
Quarterly rate 1%, n=4. A = 2000 × (1.01)⁴ = 2000 × 1.04060401 = 2081.208, CI = 81.208 ≈ 81.21.

This question belongs to: Maths Compound Interest

Question #93

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A sum becomes Rs. 2315.25 in 2 years at 5% compound interest. Find the sum.

A. Rs. 2300

B. Rs. 2100

C. Rs. 2000

D. Rs. 2200

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Correct Answer: Option B

Explanation:
P = 2315.25 / (1.05)² = 2315.25 / 1.1025 = 2100.

This question belongs to: Maths Compound Interest

Question #94

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The simple interest on a sum for 3 years at 12% is Rs. 432. The compound interest on the same sum for 2 years at 12% is:

A. Rs. 310

B. Rs. 300

C. Rs. 305.28

D. Rs. 303.36

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Correct Answer: Option C

Explanation:
P = 43200/(12×3) = 43200/36 = 1200. CI = 1200[(1.12)² − 1] = 1200 × 0.2544 = 305.28.

This question belongs to: Maths Compound Interest

Question #95

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The compound interest on Rs. 8000 at 10% per annum for 1 year compounded half-yearly is:

A. Rs. 860

B. Rs. 820

C. Rs. 840

D. Rs. 800

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Correct Answer: Option B

Explanation:
Half-yearly rate 5%, n=2. A = 8000 × (1.05)² = 8000 × 1.1025 = 8820, CI = 8820 − 8000 = Rs. 820.

This question belongs to: Maths Compound Interest

Question #96

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In how many years will a sum of Rs. 1600 amount to Rs. 1852.20 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:
1600(1.05)^t = 1852.20 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #97

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The difference between CI and SI on a certain sum for 2 years at 6% is Rs. 36. The sum is:

A. Rs. 9000

B. Rs. 10000

C. Rs. 8000

D. Rs. 11000

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Correct Answer: Option B

Explanation:
D = P × (0.06)² = P × 0.0036 = 36 ⇒ P = 10000.

This question belongs to: Maths Compound Interest

Question #98

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A sum of money at compound interest doubles in 10 years. In how many years will it become 8 times?

A. 30 years

B. 25 years

C. 20 years

D. 40 years

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Correct Answer: Option A

Explanation:
Doubles in 10 years, 8 = 2³, so time = 10 × 3 = 30 years.

This question belongs to: Maths Compound Interest

Question #99

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What will be the amount on Rs. 2400 at 10% per annum compound interest for 2 years?

A. Rs. 2800

B. Rs. 2880

C. Rs. 3000

D. Rs. 2904

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Correct Answer: Option D

Explanation:
A = 2400 × (1.1)² = 2400 × 1.21 = 2904.

This question belongs to: Maths Compound Interest

Question #100

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The compound interest on Rs. 1500 at 6% per annum for 2 years is:

A. Rs. 180

B. Rs. 185.40

C. Rs. 190.80

D. Rs. 183.60

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Correct Answer: Option B

Explanation:
A = 1500 × (1.06)² = 1500 × 1.1236 = 1685.40, CI = 1685.40 − 1500 = Rs. 185.40.

This question belongs to: Maths Compound Interest

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