Practice test

Compound interest - Test Set 1

Review 20 exam-focused questions with detailed explanations, then start the interactive test when you are ready.

20 questions

Questions and explanations

  1. Question 1

    With an annual compound interest rate of 15% per annum (in rupees), the amount received after a period of 2 years on a sum of Rs. 18000 is:—
    1. 24805
    2. 23805
    3. 25805
    4. 22805
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  2. Question 2

    How much will be the amount sum of Rs. 2500 invested at compound interest in 1 year at 4% interest rate, interest will be compounded half yearly?
    1. Rs.2601
    2. Rs.2610
    3. Rs.2600
    4. Rs.2656
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  3. Question 3

    Find the compound interest on Rs.2000 at 10% p.a. for 2 years, compounded annually
    1. 200
    2. 420
    3. 520
    4. 400
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  4. Question 4

    Find the compound interest on a sum of Rs. 8000 at 5% per annum for 2 years, the interest calculated annually.
    1. Rs.780
    2. Rs.630
    3. Rs.920
    4. Rs.820
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  5. Question 5

    Raghu invests Rs.5,00,000 in a scheme in the name of his 16 year old daughter, paying compound interest at 5% per annum compounded annually. What will be the total amount received when the daughter turns 18 years old?
    1. Rs.5,15,250
    2. Rs.5,51,520
    3. Rs.5,52,150
    4. Rs.5,51,250
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  6. Question 6

    K borrowed Rs. P at a compound interest of 20% p.a. for 2 years. Interest amount payable was Rs.5,280. What was the value of P?
    1. Rs.12,000
    2. Rs.11,000
    3. Rs.12,500
    4. Rs.11,750
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  7. Question 7

    If the principal amount is Rs.26000 then find the total amount after 3 years 10% per annum compound interest (in rupees)
    1. 35606
    2. 34606
    3. 37606
    4. 36606
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  8. Question 8

    If Rs. 2,000 is invested at the rate of 20% per annum, compounded half-yearly, then the amount after 18 months will be:
    1. Rs.2,628
    2. Rs.2,662
    3. Rs.3,200
    4. Rs.2,600
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  9. Question 9

    A person borrowed some money at 10% compound interest. If at the end of three years he returns Rs.2662 then how much money did he borrow?
    1. Rs.2000
    2. Rs.1900
    3. Rs.1800
    4. Rs.1980
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  10. Question 10

    A borrowed a certain sum of money from the bank at 8% interest compounded yearly. What was the principal if he pays Rs.1,96,851 at the end of one and a half year?
    1. Rs.184,000
    2. Rs.175,000
    3. Rs.179,000
    4. Rs.168,000
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  11. Question 11

    Mr. Murthy invested Rs.16000 in a scheme. How much will he get on maturity, if he invested it at 20% per annum compound interest for 9 months, compounded quarterly?
    1. Rs.18,521
    2. Rs.18,524
    3. Rs.18,523
    4. Rs.18,522
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  12. Question 12

    Find the compound interest on Rs.1,00,000 at 20% per annum for 3 years 3 months, compounded annually.
    1. Rs.82360
    2. Rs.81440
    3. Rs.65000
    4. Rs.71650
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  13. Question 13

    Gitesh took a loan for 4 years at 5% compound interest. If the total interest paid was Rs.431.01, Calculate the principal.
    1. Rs.2000
    2. Rs.2050
    3. Rs.2100
    4. Rs.2150
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  14. Question 14

    The compound interest on Rs.20000 in 2 years at a 4% per annum, the interest being compounded half yearly, will be
    1. Rs.1648.64
    2. Rs.1500
    3. Rs.1700
    4. Rs.1842.64
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  15. Question 15

    Find the amount received on ₹34400 for a period of 2 years at compound interest rate of 15% per annum. (in ₹)
    1. 47494
    2. 45494
    3. 46494
    4. 44494
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  16. Question 16

    A man borrows a certain sum from the bank at 7% interest compounded annually and pays Rs.51294.6 as compound interest after 2 years. What was the sum borrowed?
    1. Rs.354,000
    2. Rs.80,000
    3. Rs.425,000
    4. Rs.75,000
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  17. Question 17

    Rs.200 was invested for 2 years on 10% compound interest per year. If the rate of interest had been 20% then how much more would the investor have received as interest for the same period?
    1. Rs.46
    2. Rs.40
    3. Rs.44
    4. Rs.48
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  18. Question 18

    Rafique and Pritam invested sum of money for two year at interest rates that compounds annually at 15% per annum and 10% per annum respectively. If Rafique earns Rs.2250 more as interest than Pritam during these two years, then how much did each of them invest initially?
    1. Rs.18,000
    2. Rs.20,000
    3. Rs.20,250
    4. Rs.22,500
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  19. Question 19

    If a sum of Rs.80,000 is compounded at the rate of 4% per annum, where the interest is compounded half yearly, then find the compound interest received on it after one year.
    1. Rs.3,232
    2. Rs.2,525
    3. Rs.5,252
    4. Rs.2,623
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  20. Question 20

    Find the compound interest on Rs.32000 for 6 months at 12% per annum compounded quarterly?
    1. Rs.1947.80
    2. Rs.1948.80
    3. Rs.1947
    4. Rs.1948
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