Compound Interest Mcqs - Set 1

1)   Hafeez invested Rs. 15000 @ 10% per annum for one year. If the interest is compounded half-yearly, then the amount received by Hafeez at the end of the year will be?

a. Rs. 16,500
b. Rs. 16,525.50
c. Rs. 16,537.50
d. Rs. 18,150
Answer  Explanation 

ANSWER: Rs. 16,537.50

Explanation:
No explanation is available for this question!


2)   A man saves Rs. 200 at the end of each year and lends the money at 5% compound interest. How much will it become at the end of 3 years?

a. Rs. 565.25
b. Rs. 635
c. Rs. 662.02
d. Rs. 666.50
Answer  Explanation 

ANSWER: Rs. 662.02

Explanation:
No explanation is available for this question!


3)   What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12% p.a.?

a. Rs. 9000.30
b. Rs. 9720
c. Rs. 10123.20
d. Rs. 10483.20
Answer  Explanation 

ANSWER: Rs. 10123.20

Explanation:
No explanation is available for this question!


4)   Shohaib invested Rs. 8000 in a scheme for 2 years at compound interest rate 5% p.a. How much amount will Shohaib get on maturity of the fixed deposit?

a. Rs. 8600
b. Rs. 8620
c. Rs. 8800
d. Rs. 8840
e. None of these
Answer  Explanation 

ANSWER: None of these

Explanation:
No explanation is available for this question!


5)   Afnan wants to borrow Rs.6000 at rate of interest 6% p.a. at S.I and lend the same amount at C.I at same rate of interest for two years. What would be his income in the above transaction?

a. Rs.21.60
b. Rs.24.00
c. Rs.25.20
d. Rs.27.80
e. None of these
Answer  Explanation 

ANSWER: Rs.21.60

Explanation:
No explanation is available for this question!


6)   Rayan invested certain amount for two rates of simple interests at 6% p.a. and 7% p.a. What is the ratio of Rayan’s investments if the interests from those investments are equal?

a. 4 : 3
b. 3 : 2
c. 6 : 5
d. 7 : 6
e. None of these
Answer  Explanation 

ANSWER: 7 : 6

Explanation:
Let x be the investment of Rayan in 6% and y be in 7%

x(6)(n)/100 = y(7)(n)/100
=> x/y = 7/6
x : y = 7 : 6


7)   The simple interest on Rs.12000 at a certain rate of interest in five years is Rs.7200. Find the compound interest on the same amount for five years at the same rate of interest.

a. Rs.3502.80
b. Rs.3052.40
c. Rs.3054.8
d. Rs.3052.80
e. None of these
Answer  Explanation 

ANSWER: Rs.3052.80

Explanation:
No explanation is available for this question!


8)   What is the difference between the compound interest on Rs.12000 at 20% p.a. for one year when compounded yearly and half yearly?

a. Rs.140
b. Rs.120
c. Rs.130
d. Rs.110
Answer  Explanation 

ANSWER: Rs.120

Explanation:
No explanation is available for this question!


9)   The compound and the simple interests on a certain sum at the same rate of interest for two years are Rs.11730 and Rs.10200 respectively. Find the sum.

a. Rs.18000
b. Rs.17000
c. Rs.18500
d. Rs.17500
e. None of these.
Answer  Explanation 

ANSWER: Rs.17000

Explanation:
The simple interest for the first year is 10200/2 is Rs.5100 and compound interest for first year also is Rs.5100. The compound interest for second year on Rs.5100 for one year

So rate of the interest = (100 * 1530)/ (5100 * 1) = 30% p.a.
So P = (100 * 10200)/ (30 * 2) = Rs.17000


10)   A person got Rs.48 more when he invested a certain sum at compound interest instead of simple interest for two years at 8% p.a. Find the sum?

a. Rs.7500
b. Rs.7000
c. Rs.8000
d. Rs.6500
e. None of these
Answer  Explanation 

ANSWER: Rs.7500

Explanation:
No explanation is available for this question!


11)   The compound interest accrued on an amount of Rs.44000 at the end of two years is Rs.1193.60. What would be the simple interest accrued on the same amount at the same rate in the same period?

a. Rs.10,840
b. Rs.10,720
c. Rs.10,560
d. Rs.10,280
e. None of these.
Answer  Explanation 

ANSWER: Rs.10,560

Explanation:
No explanation is available for this question!


12)   The simple interest accrued on an amount of Rs.49500 at he end of three is Rs.17820. What would be the compound interest accured on the same amount at teh same rate in the same period? (Round off your answer to two decimal places)

a. Rs.20043.94
b. Rs.18654.81
c. Rs.20264.46
d. Rs.19612.41
e. None of these
Answer  Explanation 

ANSWER: Rs.20043.94

Explanation:
No explanation is available for this question!


13)   A man gets a simple interest of Rs.500 on a certain principal at the rate of 5% p.a in two years. Find the compound interest the man will get on twice the principal in two years at the same rate.

a. Rs.500
b. Rs.250
c. Rs.5012.50
d. Rs.5062.50
e. None of these.
Answer  Explanation 

ANSWER: None of these.

Explanation:
No explanation is available for this question!


14)   A sum of Rs.4800 is invested at a compound interest for three years, the rate of interest being 10% p.a., 20% p.a. and 25% p.a. for the 1st, 2nd and the 3rd years respectively. Find the interest received at the end of the three years.

a. Rs.2520
b. Rs.3120
c. Rs.3320
d. Rs.2760
e. None of these
Answer  Explanation 

ANSWER: Rs.3120

Explanation:
Let A be the amount received at the end of the three years.

A = 4800[1 + 10/100][1 + 20/100][1 + 25/100]
A = (4800 * 11 * 6 * 5)/(10 * 5 * 4)
A = Rs.7920
So the interest = 7920 – 4800 = Rs.3120


15)   Compound interest earned on a sum for the second and the third years are Rs.1200 and Rs.1440 respectively. Find the rate of interest?

a. 18% p.a.
b. 22% p.a.
c. 20% p.a.
d. 24% p.a.
e. None of these.
Answer  Explanation 

ANSWER: 20% p.a.

Explanation:
Rs.1440 – 1200 = Rs.240 is the interest on Rs.1200 for one year.

Rate of interest = (100 * 240) / (100 * 1) = 20% p.a


16)   Jameel invested an amount of Rs.17400 for two years. Find the rate of compound interest that will fetch him an amount of Rs.1783.50 at the end of two years?

a. 8% p.a.
b. 6% p.a.
c. 4% p.a.
d. 5% p.a.
e. None of these
Answer  Explanation 

ANSWER: 5% p.a.

Explanation:
No explanation is available for this question!


17)   Find the compound interest accrued on an amount of Rs.14,800 at 13.5% p.a at the end of two years. (Round off your answer to nearest integer)

a. Rs.4273
b. Rs.4613
c. Rs.4064
d. Rs.4266
e. None of these
Answer  Explanation 

ANSWER: Rs.4266

Explanation:
No explanation is available for this question!


18)   The compound interest earned by Sunil on a certain amount at the end of two years at the rate of 8% p.a. was Rs.2828.80. Find the total amount that Sunil got back at the end of two years in the form of principal plus interest earned.

a. Rs.18,828.80
b. Rs.19,828.80
c. Rs.18,028.80
d. Rs.17,828.80
e. None of these
Answer  Explanation 

ANSWER: Rs.19,828.80

Explanation:
No explanation is available for this question!


19)   What amount does Kiran get if he invests Rs.8000 at 10% p.a. compound interest for two years, compounding done annually?

a. Rs.9630
b. Rs.9680
c. Rs.9610
d. Rs.9650
e. None of these
Answer  Explanation 

ANSWER: None of these

Explanation:
No explanation is available for this question!


20)   Find the amount on Rs.5000 in 2 years, the rate of interest being 4% per first year and 5% for the second year?

a. Rs.460
b. Rs.5640
c. Rs.5460
d. Rs.5604
Answer  Explanation 

ANSWER: Rs.5460

Explanation:
No explanation is available for this question!