Q.1 What is the simple interest on $5000 at 10% per annum for 2 years?
$500
$1000
$1500
$2000
Explanation - Simple Interest = (P × R × T) / 100 = (5000 × 10 × 2) / 100 = $1000.
Correct answer is: $1000
Q.2 The principal amount is $2000 and the interest after 3 years is $480. Find the rate of simple interest per annum.
6%
7%
8%
9%
Explanation - SI = (P × R × T)/100 → 480 = (2000 × R × 3)/100 → R = 8%.
Correct answer is: 8%
Q.3 A sum of money doubles in 5 years at simple interest. What is the rate of interest per annum?
10%
15%
20%
25%
Explanation - At simple interest, amount doubles → SI = P in 5 years → P = (P × R × 5)/100 → R = 20%.
Correct answer is: 20%
Q.4 Find the simple interest on $2500 for 4 years at 12% per annum.
$1000
$1200
$1300
$1400
Explanation - SI = (2500 × 12 × 4)/100 = $1200.
Correct answer is: $1200
Q.5 A man borrows $8000 at 5% simple interest. How much will he pay after 3 years?
$9200
$10000
$10400
$10800
Explanation - SI = (8000 × 5 × 3)/100 = 1200. Amount = 8000 + 1200 = $9200.
Correct answer is: $9200
Q.6 Find the compound interest on $4000 for 2 years at 10% per annum, compounded annually.
$400
$800
$840
$880
Explanation - CI = P(1 + R/100)^T - P = 4000(1.1)^2 - 4000 = 4000(1.21 - 1) = $840.
Correct answer is: $840
Q.7 At what rate will $5000 amount to $6050 in 2 years compounded annually?
9%
10%
12%
15%
Explanation - A = P(1 + R/100)^2 → 6050 = 5000(1 + R/100)^2 → (1 + R/100)^2 = 1.21 → R = 10%.
Correct answer is: 10%
Q.8 If $10000 amounts to $12100 in 2 years, find the rate of compound interest per annum.
5%
10%
15%
20%
Explanation - A = P(1 + R/100)^2 → 12100 = 10000(1 + R/100)^2 → (1 + R/100)^2 = 1.21 → R = 10%.
Correct answer is: 10%
Q.9 Find the difference between compound interest and simple interest on $5000 for 2 years at 10% per annum.
$5
$10
$15
$25
Explanation - CI - SI = P(R/100)^2 = 5000(10/100)^2 = $25.
Correct answer is: $25
Q.10 The compound interest on a certain sum for 2 years is $410 and the simple interest is $400. Find the principal if rate = 10%.
$2000
$4000
$5000
$6000
Explanation - CI - SI = P(R/100)^2 → 10 = P(0.1)^2 → P = 4000.
Correct answer is: $4000
Q.11 What will be the compound interest on $1600 for 2 years at 5% per annum, compounded annually?
$160
$164
$168
$172
Explanation - CI = 1600(1.05)^2 - 1600 = 1600(1.1025 - 1) = $164.
Correct answer is: $164
Q.12 Find the time required for a sum to double itself at 10% per annum compound interest.
6 years
7 years
8 years
9 years
Explanation - (1 + R/100)^T = 2 → (1.1)^T = 2 → T = log(2)/log(1.1) ≈ 7.27 years ≈ 8 years.
Correct answer is: 8 years
Q.13 A sum of $4000 amounts to $4840 in 2 years compounded annually. Find the rate of interest.
8%
9%
10%
12%
Explanation - A = P(1 + R/100)^2 → 4840 = 4000(1 + R/100)^2 → (1 + R/100)^2 = 1.21 → R = 10%.
Correct answer is: 10%
Q.14 A person invests $5000 at 8% p.a. for 3 years compounded annually. Find the compound amount.
$6200
$6300
$6350
$6298
Explanation - A = 5000(1.08)^3 = 5000 × 1.2597 = $6298.
Correct answer is: $6298
Q.15 Find the compound interest on $10000 for 1 year at 8% compounded semi-annually.
$808
$816
$820
$824
Explanation - CI = 10000(1 + 0.08/2)^2 - 10000 = 10000(1.04)^2 - 10000 = $816.
Correct answer is: $816
Q.16 Find the simple interest on $1500 for 3 years at 6% per annum.
$180
$270
$240
$300
Explanation - SI = (1500 × 6 × 3)/100 = $270.
Correct answer is: $270
Q.17 What will be the amount if $6000 is invested at 5% simple interest for 4 years?
$7200
$7500
$7800
$8000
Explanation - SI = (6000 × 5 × 4)/100 = 1200; Amount = 6000 + 1200 = $7200.
Correct answer is: $7200
Q.18 At what rate percent will a sum of $4000 yield $800 as simple interest in 5 years?
3%
4%
5%
6%
Explanation - SI = (P × R × T)/100 → 800 = (4000 × R × 5)/100 → R = 4%.
Correct answer is: 4%
Q.19 Find the compound interest on $2000 for 3 years at 10% per annum, compounded annually.
$600
$662
$700
$720
Explanation - CI = 2000(1.1)^3 - 2000 = 2000(1.331 - 1) = $662.
Correct answer is: $662
Q.20 If the compound interest on a sum in 2 years is $102.5 and the rate is 5% p.a., find the principal.
$1800
$1900
$2000
$2100
Explanation - CI = P[(1.05)^2 - 1] → 102.5 = P(0.1025) → P = 2000.
Correct answer is: $2000
Q.21 Find the amount if $1000 is invested for 3 years at 10% p.a. compound interest.
$1300
$1331
$1320
$1350
Explanation - A = 1000(1.1)^3 = $1331.
Correct answer is: $1331
Q.22 Find the difference between the CI and SI on $10000 for 2 years at 5% p.a.
$20
$25
$30
$35
Explanation - Difference = P(R/100)^2 = 10000(5/100)^2 = $25.
Correct answer is: $25
Q.23 Find the simple interest on $1200 at 12% for 2 years.
$288
$280
$300
$320
Explanation - SI = (1200 × 12 × 2)/100 = $288.
Correct answer is: $288
Q.24 A sum of $5000 earns a compound interest of $1050 in 2 years. Find the rate per annum.
9%
10%
11%
12%
Explanation - A = 6050 = 5000(1 + R/100)^2 → (1 + R/100)^2 = 1.21 → R = 10%.
Correct answer is: 10%
Q.25 At what rate will $2000 amount to $2662 in 3 years compounded annually?
9%
10%
11%
12%
Explanation - A = 2000(1 + R/100)^3 = 2662 → (1 + R/100)^3 = 1.331 → R = 10%.
Correct answer is: 10%