Compound Interest Questions and Answers

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Q31
What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per annum compounded yearly and half-yearly?
  • A Rs. 2.04
  • B Rs. 3.06
  • C Rs. 4.80
  • D Rs. 8.30
Answer: Option A
Q32
The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
  • A 2
  • B 5/2
  • C 3
  • D 4
Answer: Option A
Q33
What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?
  • A Rs. 9000.30
  • B Rs. 9720
  • C Rs. 10123.20
  • D Rs. 10483.20
Answer: Option C
Q34
At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
  • A 6%
  • B 6.5%
  • C 7%
  • D 7.5%
Answer: Option A
Q35
The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:
  • A 3
  • B 4
  • C 5
  • D 6
Answer: Option B
Q36
Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?
  • A Rs. 8600
  • B Rs. 8620
  • C Rs. 8820
  • D None of these
Answer: Option C
Q37
The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
  • A 6.06%
  • B 6.07%
  • C 6.08%
  • D 6.09%
Answer: Option D
Q38
Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:
  • A Rs. 1550
  • B Rs. 1650
  • C Rs. 1750
  • D Rs. 2000
Answer: Option C
Q39
If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time?
  • A Rs. 51.25
  • B Rs. 52
  • C Rs. 54.25
  • D Rs. 60
Answer: Option A
Q40
The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?
  • A 8
  • B 10
  • C 12
  • D Cannot be determined
Answer: Option A
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