Compound Interest Questions and Answers

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Q21
A sum of Rs. 1100 was taken as a loan. This is to be rapid in two equal instalments. If the rate of interest be 20% compounded annually, then the value of each instalment is :
  • A Rs. 842
  • B Rs. 792
  • C Rs. 720
  • D Rs. 700
Answer: Option C
Q22
A man borrows Rs. 12500 from a bank at 20% compound interest. At the end of every year he pays Rs. 2000 as part repayment. How much does he still owe to the bank after three such instalments ?
  • A Rs. 15600
  • B Rs. 12864
  • C Rs. 12000
  • D none of these
Answer: Option D
Q23
The difference between simple interest and compound interest on Rs. 1200 for one year at 10% per annum, reckoned half-yearly is :
  • A Nil
  • B Rs. 13.20
  • C Rs. 8.80
  • D Rs. 3
Answer: Option D
Q24
The difference between the compound interests on Rs. 1600 for one year at 20% per annum. when compounded half yearly and quarterly is :
  • A Rs. 8.81
  • B Rs. 9.41
  • C Rs. 10.36
  • D Rs. 8.50
Answer: Option A
Q25
The compound interest on Rs. 8000 at 15% per annum for 2 years 4 months, compound annually is :
  • A Rs. 2980
  • B Rs. 3091
  • C Rs. 3109
  • D Rs. 3100
Answer: Option C
Q26
A t what rete of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years ?
  • A 7%
  • B 6%
  • C 7.5%
  • D 6.5%
Answer: Option B
Q27
A sum of money invested at compound interest amounts to Rs.800 in 3 years and Rs. 840 in 4 years What is the rate of interest per annum ?
  • A 2%
  • B 4%
  • C 5%
  • D 10%
Answer: Option C
Q28
A sum of money becomes 8 times of itself in 3 years at compound interest. the rate of interest is :
  • A 100%
  • B 8 %
  • C 1 %
  • D Data inadequate
Answer: Option A
Q29
A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:
  • A Rs. 120
  • B Rs. 121
  • C Rs. 122
  • D Rs. 123
Answer: Option B
Q30
The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
  • A 625
  • B 630
  • C 640
  • D 650
Answer: Option A
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