Compound Interest Mcqs - Set 3

1)   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  Explanation 

ANSWER: 8

Explanation:
No explanation is available for this question!


2)   The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:________?

a. Rs. 2.50
b. Rs. 3
c. Rs. 3.75
d. Rs. 4
Answer  Explanation 

ANSWER: Rs. 3

Explanation:
No explanation is available for this question!


3)   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  Explanation 

ANSWER: Rs. 51.25

Explanation:
No explanation is available for this question!


4)   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  Explanation 

ANSWER: Rs. 1750

Explanation:
No explanation is available for this question!


5)   The difference between compound interest and simple interest at the same rate on Rs 5000 for 2 years is Rs 72. The rate of interest per annum is:___________?

a. 6%
b. 8%
c. 10%
d. 12%
Answer  Explanation 

ANSWER: 12%

Explanation:
No explanation is available for this question!


6)   At what rate of interest will be Rs 20000 becomes Rs 24200 after 2 years when interest is compounded annually?

a. 5%
b. 6%
c. 10%
d. 15%
Answer  Explanation 

ANSWER: 10%

Explanation:
No explanation is available for this question!


7)   The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half yearly is:_______?

a. Rs 6.06%
b. Rs 6.07%
c. Rs 6.08%
d. Rs 6.09%
Answer  Explanation 

ANSWER: Rs 6.09%

Explanation:
No explanation is available for this question!


8)   The difference between simple and compound interest (compounded-annually) on a sum of money for 2 years at 10% per annum is Rs 65. The sum is_________?

a. Rs 6500
b. Rs 6565
c. Rs 65065
d. Rs 65650
Answer  Explanation 

ANSWER: Rs 6500

Explanation:
No explanation is available for this question!


9)   A man deposited Rs 6000 in a bank at 5% P.a simple interest another man deposits Rs 5000 at 8% P.a Compounded interest. After 2 years the difference of their interest will be_________?

a. Rs 230
b. Rs 232
c. Rs 600
d. Rs 832
Answer  Explanation 

ANSWER: Rs 232

Explanation:
No explanation is available for this question!


10)   A money lender borrows money at 4% P.a and pays interest at the end of the year. He lends it at 6% P.a compound interest compounded half-yearly and receives the interest at the end of the year. Thus be gains Rs 104.50 a year. The amount of money he borrows is_________?

a. Rs 4500
b. Rs 5000
c. Rs 5500
d. Rs 6000
Answer  Explanation 

ANSWER: Rs 5000

Explanation:
No explanation is available for this question!


11)   If the rate of interest be 4% per annum for first year 5% per annum for the second year and 6% per annum from the third year then the compound interest of Rs 10000 for 3 years will be_________?

a. Rs 1575.20
b. Rs 1600
c. Rs 1625.80
d. Rs 2000
Answer  Explanation 

ANSWER: Rs 1575.20

Explanation:
No explanation is available for this question!


12)   A sum of money placed at compound interest doubles itself in 5 years in how many years it would to 8 times of itself at the same rate of interest?

a. 7 years
b. 10 years
c. 15 years
d. 20 years
Answer  Explanation 

ANSWER: 15 years

Explanation:
No explanation is available for this question!


13)   The difference between compound interest and simple interest on a sum for 2 years at 8% P.a is Rs 786. The sum is:_________?

a. Rs 100000
b. Rs 11000
c. Rs 120000
d. Rs 170000
Answer  Explanation 

ANSWER: Rs 120000

Explanation:
No explanation is available for this question!


14)   If the interest is payable annually than the principal on which the compound interest for 3 years at 10% P.a is Rs 33/- is given by:__________?

a. Rs 900
b. Rs 1000
c. Rs 1050
d. Rs 1100
Answer  Explanation 

ANSWER: Rs 1000

Explanation:
No explanation is available for this question!


15)   The Compound interest on Rs 16000 for 9 months at 20% P.a compounded quarterly is:__________?

a. Rs 2518
b. Rs 2520
c. Rs 2522
d. Rs 2524
Answer  Explanation 

ANSWER: Rs 2522

Explanation:
No explanation is available for this question!


16)   How much would a sum of Rs 16000 approximately amount to in 2 years at 10% P.a compounded half-yearly?

a. Rs 17423
b. Rs 18973
c. Rs 19448
d. Rs 19880
Answer  Explanation 

ANSWER: Rs 19448

Explanation:
No explanation is available for this question!


17)   What will be the compound interest on Rs 25000 after 3 years at 12% Per annum?

a. Rs 9000.30
b. Rs 9720
c. Rs 10123.20
d. Rs 10483.20
e. None of these
Answer  Explanation 

ANSWER: None of these

Explanation:
No explanation is available for this question!


18)   A deposited Rs 6000 in a bank at 5% Per annum simple interest. B deposited Rs 5000 at 8% P.a Compound interest. After 2 years the difference between their interest will be:_________?

a. Rs 230
b. Rs 232
c. Rs 600
d. Rs 832
Answer  Explanation 

ANSWER: Rs 232

Explanation:
No explanation is available for this question!


19)   The difference between compound interest and simple interest on Rs 8000 at 5% P.a for 3 years is_________?

a. Rs 50
b. Rs 60
c. Rs 61
d. Rs 600
Answer  Explanation 

ANSWER: Rs 61

Explanation:
No explanation is available for this question!


20)   The difference between the simple interest and the compound interest on Rs 5000 at 10% P.a for 3 years is:_______?

a. Rs 145
b. Rs 150
c. Rs 165
d. Rs 180
e. None of these
Answer  Explanation 

ANSWER: None of these

Explanation:
No explanation is available for this question!