Compound interest questions Practice Question and Answer

Q:

A man borrows some money at 3% simple interest per annum and lends it to somebody at 5% interest to be compounded annually. By this he makes a profit of Rs.541 at the end of 3 years. The money he borrowed was-

1629 0

  • 1
    Rs. 15800
    Correct
    Wrong
  • 2
    Rs. 18400
    Correct
    Wrong
  • 3
    Rs. 8000
    Correct
    Wrong
  • 4
    Rs. 12000
    Correct
    Wrong
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Answer : 3. "Rs. 8000 "

Q:

The compound interest on Rs. 6250 at 12% per annum for 1 year, compounded half-yearly is

1629 0

  • 1
    772.50
    Correct
    Wrong
  • 2
    772
    Correct
    Wrong
  • 3
    672.50
    Correct
    Wrong
  • 4
    672
    Correct
    Wrong
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Answer : 1. "772.50"

Q:

Find the compound interest on a sum of Rs. 46875 for 2 years at 12% p.a, if interest is compounded 8 months?

1626 0

  • 1
    14174
    Correct
    Wrong
  • 2
    10174
    Correct
    Wrong
  • 3
    12174
    Correct
    Wrong
  • 4
    13174
    Correct
    Wrong
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Answer : 3. "12174 "

Q:

A sum borrowed under compound interest doubles itself in 10 years. When will it become fourfold of itself at the same rate of interest?

1620 0

  • 1
    15 years
    Correct
    Wrong
  • 2
    20 years
    Correct
    Wrong
  • 3
    24 years
    Correct
    Wrong
  • 4
    40 years
    Correct
    Wrong
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Answer : 2. "20 years"

Q:

A sum of money was lent at 10% per annum, compounded annually, for 2 years. If the interest was compounded half - yearly, he would have received Rs.660.75 more. Find the sum.

1607 0

  • 1
    120000
    Correct
    Wrong
  • 2
    124000
    Correct
    Wrong
  • 3
    104400
    Correct
    Wrong
  • 4
    150000
    Correct
    Wrong
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Answer : 3. "104400 "

Q:

The simple and compound interest that can be earned in two years at the same rate is Rs 1500 and Rs 1575 respectively. What is the rate (% per annum) of interest?

1603 0

  • 1
    12.5%
    Correct
    Wrong
  • 2
    20%
    Correct
    Wrong
  • 3
    10%
    Correct
    Wrong
  • 4
    5%
    Correct
    Wrong
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Answer : 3. "10% "

Q:

A sum of Rs.13,000 is to be paid back in 2 equal annual instalments. How much is each instalment if the interest is compounded annually at 8 % per annum?

1597 0

  • 1
    Rs.7280
    Correct
    Wrong
  • 2
    Rs.7290
    Correct
    Wrong
  • 3
    Rs.7270
    Correct
    Wrong
  • 4
    Rs.7920
    Correct
    Wrong
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Answer : 2. "Rs.7290"

Q:

A certain sum of money at a certain rate doubles itself in 9 years, then in how many years it will become the same sum will be 5 times of itself?

1596 0

  • 1
    25 years
    Correct
    Wrong
  • 2
    36 years
    Correct
    Wrong
  • 3
    27 years
    Correct
    Wrong
  • 4
    45 years
    Correct
    Wrong
  • 5
    48 years
    Correct
    Wrong
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Answer : 2. "36 years "

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