Compound Interest MCQs with Answers and Solutions for Competitive Exams

Question #121

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A sum amounts to Rs. 2420 in 2 years and Rs. 2662 in 3 years at compound interest. Find the sum.

A. Rs. 2100

B. Rs. 1800

C. Rs. 1900

D. Rs. 2000

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Correct Answer: Option D

Explanation:
Rate = (2662/2420 − 1) × 100 = 10%. P = 2420 / (1.1)² = 2420 / 1.21 = 2000.

This question belongs to: Maths Compound Interest

Question #122

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The difference between compound interest and simple interest on a certain sum for 2 years at 7% is Rs. 49. Find the sum.

A. Rs. 10000

B. Rs. 12000

C. Rs. 11000

D. Rs. 9000

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Correct Answer: Option A

Explanation:
D = P × (0.07)² = P × 0.0049 = 49 ⇒ P = 10000.

This question belongs to: Maths Compound Interest

Question #123

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Find the amount on Rs. 6250 at 8% per annum compound interest for 2 years.

A. Rs. 7290

B. Rs. 7350

C. Rs. 7300

D. Rs. 7320

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Correct Answer: Option A

Explanation:
A = 6250 × (1.08)² = 6250 × 1.1664 = 7290.

This question belongs to: Maths Compound Interest

Question #124

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The compound interest on Rs. 4000 at 10% per annum for 1 year compounded half-yearly is:

A. Rs. 440

B. Rs. 420

C. Rs. 410

D. Rs. 400

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Correct Answer: Option C

Explanation:
A = 4000 × (1.05)² = 4000 × 1.1025 = 4410, CI = 4410 − 4000 = Rs. 410.

This question belongs to: Maths Compound Interest

Question #125

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In how many years will a sum of Rs. 800 become Rs. 926.10 at 5% compound interest?

A. 2.5 years

B. 2 years

C. 3 years

D. 3.5 years

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Correct Answer: Option C

Explanation:
800(1.05)^t = 926.10 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #126

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The difference between CI and SI on Rs. 6000 for 2 years at 5% is:

A. Rs. 15

B. Rs. 18

C. Rs. 12

D. Rs. 20

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Correct Answer: Option A

Explanation:
D = 6000 × (0.05)² = 6000 × 0.0025 = Rs. 15.

This question belongs to: Maths Compound Interest

Question #127

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At what rate percent compound interest will Rs. 625 become Rs. 676 in 2 years?

A. 5%

B. 3%

C. 6%

D. 4%

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Correct Answer: Option D

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

This question belongs to: Maths Compound Interest

Question #128

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The compound interest on a sum for 2 years at 5% is Rs. 102.50. Find the sum.

A. Rs. 1100

B. Rs. 1050

C. Rs. 950

D. Rs. 1000

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Correct Answer: Option D

Explanation:
CI = P × 0.1025 = 102.50 ⇒ P = 1000.

This question belongs to: Maths Compound Interest

Question #129

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A sum of money triples itself in 6 years at compound interest. In how many years will it become 9 times?

A. 9 years

B. 10 years

C. 12 years

D. 15 years

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Correct Answer: Option C

Explanation:
3 times in 6 years, 9 = 3² ⇒ 6 × 2 = 12 years.

This question belongs to: Maths Compound Interest

Question #130

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Find the compound interest on Rs. 1800 at 10% per annum for 1 year compounded half-yearly.

A. Rs. 180

B. Rs. 184.50

C. Rs. 189

D. Rs. 190

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Correct Answer: Option B

Explanation:
Half-yearly rate 5%, n=2. A = 1800 × (1.05)² = 1800 × 1.1025 = 1984.50, CI = 1984.50 − 1800 = Rs. 184.50.

This question belongs to: Maths Compound Interest

Question #131

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

A. 10.38%

B. 10.47%

C. 10.50%

D. 10.25%

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Correct Answer: Option A

Explanation:
Quarterly rate 2.5%, (1.025)⁴ = 1.10381289, effective = 10.3813% ≈ 10.38%.

This question belongs to: Maths Compound Interest

Question #132

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The simple interest on a sum for 2 years at 10% is Rs. 400. The compound interest on the same sum for 2 years at 10% is:

A. Rs. 430

B. Rs. 410

C. Rs. 420

D. Rs. 400

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Correct Answer: Option C

Explanation:
P = 40000/(10×2) = 2000. CI = 2000[(1.1)² − 1] = 2000 × 0.21 = Rs. 420.

This question belongs to: Maths Compound Interest

Question #133

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A sum of money at compound interest amounts to Rs. 6655 in 3 years and to Rs. 7320.50 in 4 years. Find the rate of interest.

A. 11%

B. 10%

C. 9%

D. 8%

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Correct Answer: Option B

Explanation:
Rate = (7320.50/6655 − 1) × 100 = (1.1 − 1) × 100 = 10%.

This question belongs to: Maths Compound Interest

Question #134

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Find the compound interest on Rs. 9000 at 8% per annum for 2 years.

A. Rs. 1497.60

B. Rs. 1512

C. Rs. 1524.80

D. Rs. 1500

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Correct Answer: Option A

Explanation:
A = 9000 × (1.08)² = 9000 × 1.1664 = 10497.60, CI = 10497.60 − 9000 = Rs. 1497.60.

This question belongs to: Maths Compound Interest

Question #135

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At what rate percent compound interest will a sum of Rs. 2000 become Rs. 2880 in 2 years?

A. 18%

B. 25%

C. 15%

D. 20%

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Correct Answer: Option D

Explanation:
2000(1+r)² = 2880 ⇒ (1+r)² = 1.44 = (1.2)² ⇒ r = 20%.

This question belongs to: Maths Compound Interest

Question #136

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The difference between CI and SI on Rs. 7500 for 2 years at 8% is:

A. Rs. 48

B. Rs. 50

C. Rs. 42

D. Rs. 45

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Correct Answer: Option A

Explanation:
D = 7500 × (0.08)² = 7500 × 0.0064 = Rs. 48.

This question belongs to: Maths Compound Interest

Question #137

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A sum of money at compound interest becomes 4 times in 2 years. In how many years will it become 16 times?

A. 5 years

B. 4 years

C. 3 years

D. 6 years

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Correct Answer: Option B

Explanation:
4 times in 2 years; 16 = 4², so time = 2 × 2 = 4 years.

This question belongs to: Maths Compound Interest

Question #138

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The compound interest on Rs. 1250 at 8% per annum for 2 years is:

A. Rs. 212

B. Rs. 208

C. Rs. 204

D. Rs. 216

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Correct Answer: Option B

Explanation:
A = 1250 × (1.08)² = 1250 × 1.1664 = 1458, CI = 1458 − 1250 = Rs. 208.

This question belongs to: Maths Compound Interest

Question #139

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In how many years will Rs. 1200 amount to Rs. 1323 at 5% per annum compound interest?

A. 2 years

B. 1.5 years

C. 2.5 years

D. 3 years

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Correct Answer: Option A

Explanation:
1200(1.05)^t = 1323 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #140

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The compound interest on Rs. 1000 for 3 years at 10% per annum is:

A. Rs. 340

B. Rs. 331

C. Rs. 320

D. Rs. 310

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Correct Answer: Option B

Explanation:
A = 1000 × (1.1)³ = 1000 × 1.331 = 1331, CI = 1331 − 1000 = Rs. 331.

This question belongs to: Maths Compound Interest

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