Q.1 What will be the compound interest on Rs. 10,000 at 10% per annum for 2 years, compounded annually?
Rs. 2000
Rs. 2100
Rs. 2200
Rs. 2300
Explanation - Amount = 10000*(1+10/100)^2 = 10000*1.21 = 12100. CI = 12100-10000 = 2100.
Correct answer is: Rs. 2100
Q.2 If Rs. 5000 is invested at 12% compounded annually for 2 years, what will be the amount?
Rs. 5600
Rs. 6272
Rs. 6200
Rs. 6500
Explanation - Amount = 5000*(1+12/100)^2 = 5000*1.2544 = 6272.
Correct answer is: Rs. 6272
Q.3 Find the compound interest on Rs. 8000 at 10% per annum for 1 year compounded half-yearly.
Rs. 800
Rs. 810
Rs. 816
Rs. 820
Explanation - Rate per half-year = 5%, time = 2 half-years. Amount = 8000*(1.05)^2 = 8820. CI = 820.
Correct answer is: Rs. 816
Q.4 If Rs. 4000 becomes Rs. 4624 in 2 years compounded annually, find the rate of interest.
6%
7%
8%
10%
Explanation - Amount = P(1+R/100)^2. 4624 = 4000(1+R/100)^2. (1+R/100)^2=1.156. 1+R/100=1.06, R=6%.
Correct answer is: 6%
Q.5 At what annual rate will Rs. 2000 yield Rs. 2662 in 3 years compounded annually?
10%
9%
8%
11%
Explanation - Amount = 2000*(1+R/100)^3 = 2662. (1+R/100)^3 = 1.331 => 1+R/100=1.1 => R=10%.
Correct answer is: 10%
Q.6 The compound interest on Rs. 5000 in 2 years at 8% compounded annually is:
Rs. 816
Rs. 832
Rs. 840
Rs. 850
Explanation - Amount = 5000*(1.08)^2 = 5832. CI = 5832-5000 = 832.
Correct answer is: Rs. 832
Q.7 Find the compound interest on Rs. 10,000 at 8% per annum for 1 year compounded half-yearly.
Rs. 800
Rs. 808
Rs. 816
Rs. 820
Explanation - Rate per half-year=4%, time=2. Amount=10000*(1.04)^2=10816. CI=816.
Correct answer is: Rs. 808
Q.8 If Rs. 640 becomes Rs. 774.40 in 2 years at compound interest, find the rate of interest.
10%
12%
8%
6%
Explanation - 774.40=640(1+R/100)^2. (1+R/100)^2=1.21 => 1+R/100=1.1 => R=10%.
Correct answer is: 10%
Q.9 What is the difference between compound and simple interest on Rs. 10,000 at 10% per annum for 2 years?
Rs. 100
Rs. 200
Rs. 150
Rs. 50
Explanation - SI=2000, CI=2100. Difference=100.
Correct answer is: Rs. 100
Q.10 Find the compound interest on Rs. 12,000 at 20% per annum for 9 months, compounded quarterly.
Rs. 1800
Rs. 1854.40
Rs. 1900
Rs. 2000
Explanation - Quarterly rate=5%, time=3 quarters. Amount=12000*(1.05)^3=13854.40. CI=1854.40.
Correct answer is: Rs. 1854.40
Q.11 Find the amount on Rs. 5000 for 1.5 years at 10% compounded half-yearly.
Rs. 5775
Rs. 5760
Rs. 5788.125
Rs. 5790
Explanation - Half-yearly rate=5%, time=3 half-years. Amount=5000*(1.05)^3=5788.125.
Correct answer is: Rs. 5788.125
Q.12 If Rs. 2500 amounts to Rs. 2916 in 2 years compounded annually, find the rate of interest.
8%
10%
7%
6%
Explanation - 2916=2500(1+R/100)^2 => (1+R/100)^2=1.1664 => 1+R/100=1.08 => R=8%.
Correct answer is: 8%
Q.13 What will be the compound interest on Rs. 2000 at 5% per annum for 3 years compounded annually?
Rs. 315
Rs. 320
Rs. 310
Rs. 325
Explanation - Amount=2000*(1.05)^3=2315. CI=315.
Correct answer is: Rs. 315
Q.14 The compound interest on Rs. 4000 for 2 years is Rs. 410. Find the rate of interest if compounded annually.
5%
6%
7%
8%
Explanation - CI=410, Amount=4410. 4410=4000(1+R/100)^2 => (1+R/100)=1.05 => R=5%.
Correct answer is: 5%
Q.15 If a sum triples itself in 2 years compounded annually, find the rate of interest.
41.42%
50%
60%
73.2%
Explanation - (1+R/100)^2=3 => 1+R/100=√3=1.732 => R≈73.2%.
Correct answer is: 73.2%
Q.16 What is the compound interest on Rs. 1600 at 20% for 18 months compounded half-yearly?
Rs. 540
Rs. 576
Rs. 580
Rs. 600
Explanation - Half-yearly rate=10%, time=3. Amount=1600*(1.1)^3=2176. CI=576.
Correct answer is: Rs. 576
Q.17 Find the compound interest on Rs. 10,000 at 4% per annum for 2 years compounded annually.
Rs. 816
Rs. 820
Rs. 824
Rs. 830
Explanation - Amount=10000*(1.04)^2=10816. CI=816.
Correct answer is: Rs. 816
Q.18 If the difference between compound and simple interest on Rs. 12,000 at 10% for 2 years is Rs. 120, find CI.
Rs. 2400
Rs. 2520
Rs. 2500
Rs. 2600
Explanation - SI=2400. Difference=120, so CI=2520.
Correct answer is: Rs. 2520
Q.19 In how many years will Rs. 8000 amount to Rs. 9261 at 5% compounded annually?
2 years
3 years
4 years
5 years
Explanation - 9261=8000*(1.05)^n. (1.05)^n=1.1576. n=3.
Correct answer is: 3 years
Q.20 Find the compound interest on Rs. 20,000 at 15% for 2 years compounded annually.
Rs. 6000
Rs. 6300
Rs. 6450
Rs. 6500
Explanation - Amount=20000*(1.15)^2=26450. CI=6450.
Correct answer is: Rs. 6450
Q.21 If Rs. 5000 amounts to Rs. 5832 in 2 years compounded annually, find the rate of interest.
8%
10%
12%
15%
Explanation - 5832=5000(1+R/100)^2 => (1+R/100)^2=1.1664 => R=8%.
Correct answer is: 8%
Q.22 At what rate per annum will Rs. 1000 amount to Rs. 1331 in 3 years compounded annually?
10%
11%
12%
13%
Explanation - 1331=1000(1+R/100)^3 => (1+R/100)^3=1.331 => R=10%.
Correct answer is: 10%
Q.23 Find the amount on Rs. 1600 at 5% for 2 years compounded annually.
Rs. 1680
Rs. 1764
Rs. 1700
Rs. 1800
Explanation - Amount=1600*(1.05)^2=1764. CI=164.
Correct answer is: Rs. 1764
Q.24 What will Rs. 2000 become in 2 years at 5% per annum compound interest?
Rs. 2100
Rs. 2205
Rs. 2150
Rs. 2250
Explanation - Amount=2000*(1.05)^2=2205. CI=205.
Correct answer is: Rs. 2205