Compound Interest MCQs with Answers and Solutions for Competitive Exams

Question #141

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What is the principal if the amount after 3 years at 5% compound interest is Rs. 2315.25?

A. Rs. 2000

B. Rs. 2100

C. Rs. 1900

D. Rs. 2200

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Correct Answer: Option A

Explanation:
P = 2315.25 / (1.05)³ = 2315.25 / 1.157625 = 2000.

This question belongs to: Maths Compound Interest

Question #142

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The difference between CI and SI on a sum for 2 years at 10% is Rs. 60. The sum is:

A. Rs. 5500

B. Rs. 6000

C. Rs. 6500

D. Rs. 5000

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Correct Answer: Option B

Explanation:
D = P × 0.01 = 60 ⇒ P = 6000.

This question belongs to: Maths Compound Interest

Question #143

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A sum of money at compound interest doubles in 6 years. In how many years will it become 4 times?

A. 10 years

B. 9 years

C. 18 years

D. 12 years

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Correct Answer: Option D

Explanation:
Doubles in 6 years, 4 = 2², so 6 × 2 = 12 years.

This question belongs to: Maths Compound Interest

Question #144

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The compound interest on Rs. 20000 at 8% per annum for 1 year compounded half-yearly is:

A. Rs. 1632

B. Rs. 1664

C. Rs. 1600

D. Rs. 1680

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Correct Answer: Option A

Explanation:
Half-yearly rate 4%, n=2. A = 20000 × (1.04)² = 20000 × 1.0816 = 21632, CI = 21632 − 20000 = Rs. 1632.

This question belongs to: Maths Compound Interest

Question #145

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Find the compound interest on Rs. 10000 at 8% per annum compounded quarterly for 1 year.

A. Rs. 816

B. Rs. 800

C. Rs. 832

D. Rs. 824.32

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Correct Answer: Option D

Explanation:
Quarterly rate = 2%, n = 4. A = 10000 × (1.02)⁴ = 10000 × 1.08243216 = 10824.3216, CI = Rs. 824.32.

This question belongs to: Maths Compound Interest

Question #146

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The compound interest on a sum for 2 years at 10% is Rs. 1260. The sum is:

A. Rs. 7000

B. Rs. 6500

C. Rs. 5500

D. Rs. 6000

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Correct Answer: Option D

Explanation:
CI = P × 0.21 = 1260 ⇒ P = 1260 / 0.21 = 6000.

This question belongs to: Maths Compound Interest

Question #147

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At what rate percent per annum will Rs. 5000 amount to Rs. 5618 in 2 years at compound interest?

A. 7%

B. 5%

C. 8%

D. 6%

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Correct Answer: Option D

Explanation:
5000(1+r)² = 5618 ⇒ (1+r)² = 1.1236 = (1.06)² ⇒ r = 6%.

This question belongs to: Maths Compound Interest

Question #148

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The simple interest on a sum for 2 years at 4% is Rs. 200. The compound interest on the same sum for 2 years at 4% is:

A. Rs. 202

B. Rs. 206

C. Rs. 204

D. Rs. 200

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Correct Answer: Option C

Explanation:
P = 20000/(4×2) = 2500. CI = 2500 × [(1.04)² − 1] = 2500 × 0.0816 = 204.

This question belongs to: Maths Compound Interest

Question #149

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A sum becomes Rs. 10816 in 2 years at 4% compound interest. Find the sum.

A. Rs. 9500

B. Rs. 10500

C. Rs. 11000

D. Rs. 10000

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Correct Answer: Option D

Explanation:
P = 10816 / (1.04)² = 10816 / 1.0816 = 10000.

This question belongs to: Maths Compound Interest

Question #150

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The difference between CI and SI on Rs. 18000 for 2 years at 5% is:

A. Rs. 45

B. Rs. 55

C. Rs. 50

D. Rs. 40

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Correct Answer: Option A

Explanation:
D = 18000 × (0.05)² = 18000 × 0.0025 = Rs. 45.

This question belongs to: Maths Compound Interest

Question #151

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Find the compound interest on Rs. 4500 at 10% per annum for 1 year compounded half-yearly.

A. Rs. 461.25

B. Rs. 480

C. Rs. 472.50

D. Rs. 450

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Correct Answer: Option A

Explanation:
Half-yearly rate 5%, n=2. A = 4500 × (1.05)² = 4500 × 1.1025 = 4961.25, CI = 4961.25 − 4500 = Rs. 461.25.

This question belongs to: Maths Compound Interest

Question #152

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At what rate percent compound interest will a sum of Rs. 4000 become Rs. 5324 in 3 years?

A. 8%

B. 12%

C. 10%

D. 15%

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Correct Answer: Option C

Explanation:
4000(1+r)³ = 5324 ⇒ (1+r)³ = 1.331 = (1.1)³ ⇒ r = 10%.

This question belongs to: Maths Compound Interest

Question #153

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The compound interest on a sum for 2 years at 8% is Rs. 665.60. The sum is:

A. Rs. 3800

B. Rs. 4400

C. Rs. 4000

D. Rs. 4200

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Correct Answer: Option C

Explanation:
CI = P × 0.1664 = 665.60 ⇒ P = 665.60 / 0.1664 = 4000.

This question belongs to: Maths Compound Interest

Question #154

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A sum of money at compound interest becomes 8 times in 3 years. The rate of interest is:

A. 100%

B. 80%

C. 50%

D. 120%

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Correct Answer: Option A

Explanation:
(1+r)³ = 8 ⇒ 1+r = 2 ⇒ r = 100%.

This question belongs to: Maths Compound Interest

Question #155

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Find the amount on Rs. 12500 at 8% per annum compound interest for 2 years.

A. Rs. 14580

B. Rs. 14600

C. Rs. 14620

D. Rs. 14640

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Correct Answer: Option A

Explanation:
A = 12500 × (1.08)² = 12500 × 1.1664 = 14580.

This question belongs to: Maths Compound Interest

Question #156

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The effective rate of interest for 6% per annum compounded half-yearly is:

A. 6.12%

B. 6.06%

C. 6.09%

D. 6.15%

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Correct Answer: Option C

Explanation:
Effective rate = (1.03)² − 1 = 1.0609 − 1 = 6.09%.

This question belongs to: Maths Compound Interest

Question #157

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In how many years will Rs. 5000 amount to Rs. 6655 at 10% compound interest?

A. 2.5 years

B. 3 years

C. 3.5 years

D. 2 years

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Correct Answer: Option B

Explanation:
5000(1.1)^t = 6655 ⇒ (1.1)^t = 1.331 = (1.1)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #158

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The difference between CI and SI on a sum for 2 years at 12% is Rs. 72. The sum is:

A. Rs. 5000

B. Rs. 4500

C. Rs. 5500

D. Rs. 6000

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Correct Answer: Option A

Explanation:
D = P × (0.12)² = P × 0.0144 = 72 ⇒ P = 5000.

This question belongs to: Maths Compound Interest

Question #159

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A sum of money at compound interest doubles in 7 years. In how many years will it become 8 times?

A. 21 years

B. 28 years

C. 35 years

D. 14 years

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Correct Answer: Option A

Explanation:
Doubles in 7 years, 8 = 2³, so 7 × 3 = 21 years.

This question belongs to: Maths Compound Interest

Question #160

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The compound interest on Rs. 2200 at 10% per annum for 2 years is:

A. Rs. 520

B. Rs. 484

C. Rs. 462

D. Rs. 500

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Correct Answer: Option C

Explanation:
A = 2200 × (1.1)² = 2200 × 1.21 = 2662, CI = 2662 − 2200 = Rs. 462.

This question belongs to: Maths Compound Interest

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