Compound interest questions Practice Question and Answer
8 Q: Mr. Mike borrowed Rs. 8500 at 4 % per annum compound interest. The compound interest compounded annually for 2 yeas is:
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606c3bce6a85553684ddfad5- 1Rs. 9136.6false
- 2Rs. 639.6false
- 3Rs. 693.6true
- 4Rs. 9139.6false
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Answer : 3. "Rs. 693.6"
Q: The compound interest on a certain sum of money invested for 2 years at 5 % per annum is Rs. 328. The simple interest on the sum, at the same rate and for the same period will be
1141 05e205f8fac282f42170f9f0b
5e205f8fac282f42170f9f0b- 1Rs . 320true
- 2Rs . 308false
- 3Rs . 300false
- 4Rs . 287false
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Answer : 1. "Rs . 320 "
Q: A person invested 1100 in a company at compound interest compounded semi-annually. He received 1331 after one year. The rate of interest per annum is
1141 060068c0e7a0c6e1017e01071
60068c0e7a0c6e1017e01071- 111%false
- 220%true
- 35%false
- 410%false
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Answer : 2. "20%"
Q: The compound interest on Rs.16, 000 for 9 months at 20 % per annum, interest being compounded quarterly, is
1139 05e268b2257f70c65e284eb0a
5e268b2257f70c65e284eb0a- 1Rs. 2,520false
- 2Rs. 2,524false
- 3Rs. 2,522true
- 4Rs. 2,518false
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Answer : 3. "Rs. 2,522 "
Q: There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
1133 05fd34cd4c46a213fc5c57630
5fd34cd4c46a213fc5c57630- 1Rs. 2160false
- 2Rs. 3120false
- 3Rs. 3972true
- 4Rs. 6240false
- 5None of thesefalse
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Answer : 3. "Rs. 3972"
Q: On a certain sum of money, the simple interest for 2 years is Rs. 350 at the rate of 4 % per annum. If it was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned?
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5f16b2c6cf79540a75392448- 1Rs. 14false
- 2Rs. 35false
- 3Rs. 3.50false
- 4Rs. 7true
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Answer : 4. "Rs. 7 "
Q: A person borrows Rs.1,00,000 from a bank at 10% per annum simple interest and clears the debt in five years. If the instalment paid at the end of the first, second, third and fourth years to clear the debt are Rs.10,000, Rs.20,000, Rs.30,000 and Rs.40,000, respectively, what amount should be paid at the end of the fifth year to clear the debt?
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647f312a51bf194753009b4d- 1Rs.40,450false
- 2Rs.36,450false
- 3Rs.39,490true
- 4Rs.38,250false
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Answer : 3. "Rs.39,490 "
Q: What is the difference between compound interest and simple interest on Rs. 2500 for 2 years at 4% per annum?
1115 060be073d5d840673873c4943
60be073d5d840673873c4943- 1₹ 4true
- 2₹ 20false
- 3₹ 40false
- 4₹ 400false
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