Compound Interest

1) What is the difference between the compound interests on Rs. 5000 for
11⁄2 years at 4% per annum compounded yearly and half-yearly?

a) Rs. 2.04 b) Rs. 4.80 c) Rs. 3.06 d) Rs. 8.30

2) A bank offers 5% compound interest calculated on half-yearly basis. A

customer deposits Rs. 1600 each on 1st January and 1st July of a year. At
the end of the year, the amount he would have gained by way of interest is:

a) Rs. 120 b) Rs. 121 c) Rs. 123 d) Rs. 122

3) There is 80% increase in an amount in 8 years at simple interest. What will

be the compound interest of Rs. 14,000 after 3 years at the same rate?

a) Rs.3794 b) Rs.3714 c) Rs.4612 d) Rs.4634

4) The difference between simple and compound interests compounded

annually on a certain sum of money for 2 years at 4% per annum is Re. 1.
The sum is

a) Rs.600 b) Rs.645 c) Rs.525 d) Rs.625

5) 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)9% b)12 % c)8 % d)6%

6) Arun invested an amount of Rs. 20000 in a fixed deposit scheme for 2

years at compound interest rate 4 p.c.p.a. How much amount will Arun get
on maturity of the fixed deposit?

a) 20342 b) 21632 c) 22324 d) 24120

7) Simple interest on a certain sum of money for 4 years at 5% per annum is

half the compound interest on Rs. 3000 for 2 years at 10% per annum. The
sum placed on simple interest is:

a) Rs.1575 b) Rs. 2200 c) Rs. 1200 d) Rs. 1625

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 8) The compound interest on a certain sum for 2 years at 10% per annum is
Rs. 525. The simple interest on the same sum for double the time at half the
rate percent per annum is:

a) Rs. 500 b) Rs. 400 c) Rs. 450 d) Rs. 600

9) If the difference between the simple interest and compound interests on

some principal amount at 20% for 3 years is Rs. 48, then the principal
amount is

a) Rs. 365 b) Rs. 325 c) Rs. 395 d) Rs. 375

10) Andrews earns an interest of Rs. 1596 for the third year and Rs. 1400 for
the second year on the same sum. Find the rate of interest if it is lent at
compound interest.

a) 12% b)13 % c)14% d)15 %

11) The population of a town is 40,000. It decreases by 20 per thousand per

year. Find out the population after 2 years.

a)38484 b)38266 c)38416 d)38226

12) The compound interest on a sum for 2 years is Rs. 832 and the simple
interest on the same sum for the same period is Rs. 800. The difference
between the compound and simple interest for 3 years will be

a) Rs. 48 b) Rs. 66.56 c)none d) Rs. 98.56

13) John invested money in two schemes A and B offering compound interest
@ 5 p.c.p.a. and 10 p.c.p.a. respectively. If the total amount of interest
accrued through two schemes together in two years was Rs. 2075 and the
total amount invested was Rs. 15,000, find out the amount invested in
Scheme A?

a) Rs. 10000 b) Rs. 8000 c) Rs. 12000 d) Rs. 14000

14) On a sum of money, the simple interest for 2 years is Rs. 320, while the
compound interest is Rs. 340, the rate of interest being the same in both the
cases. The rate of interest is:

a) 15% b) 14.25% c) 12.5% d) 10.5%

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 15) A bank offers 10% interest rate compounded annually. A person deposits
Rs. 20,000 every year in his account. If he does not withdraw any amount,
then how much balance will his account show after four years?

a) Rs. 102102 b) Rs. 102220 c) Rs. 104202 d)none

16) A sum of money placed at compound interest doubles itself in 4 years. In

how many years will it amount to 8 times?

a) 10 years b) 8 years c) 6 years d) 12 years

17) The compound interest, interest being compounded annually, on a certain

sum for the second and the third years are Rs 2880 and rs 3398.40
respectively. Find the rate of interest ?

a)16 % b)18% c)20% d)15%

18) A sum of Rs. 6600 was taken as a loan. This is to be repaid in two equal
annual instalments. If the rate of interest be 20% compounded annually then
the value of each instalment is

a) Rs. 4320 b) Rs. 2220 c) Rs. 4400 d) Rs. 4420

19) If in a certain number of years Rs. 10000 amount to Rs. 160000 at

compound interest, in half that time Rs. 10000 will amount to:

a) Rs. 50000 b) Rs. 40000 c) Rs. 80000 d) Rs. 60000

20) What will be the amount if a sum of Rs. 10000 is placed at compound
interest for 3 years while rate of interest for the first, second and third years
is 2, 5 and 10 percent, respectively?

a) Rs. 11781 b) Rs. 11244 c) Rs. 11231 d) Rs. 11658

21) Simple interest on a sum at 5% per annum for 2 years is Rs. 60. The
compound interest on the same sum for the same period is

a) Rs. 62.4 b) Rs. 61.5 c) Rs. 62 d) Rs. 60.5

22)The simple interest and the compound interest at a certain rate on a

certain sum for two years are Rs 1800 and Rs 1980 respectively. Find the
sum and the rate of interest .

a)3000,20% b)4500,20% c)4500, 10% d)8600, 15%

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 23) Arun borrowed a certain sum from Manish at a certain rate of simple
interest for 2 years. He lent this sum to Sunil at the same rate of interest
compounded annually for the same period. At the end of two years, he
received Rs. 2400 as compound interest but paid Rs. 2000 only as simple
interest. Find the rate of interest

a) 40% b)30% c)20% d)10%

24) If a sum on compound interest becomes three times in 4 years, then with
the same interest rate, the sum will become 81 times in:

a) 12 years b) 18 years b) 16 years d) 14 years

25) Divide Rs. 3364 between A and B, so that A's Share at the end of 5 years
may equal to B's share at the end of 7 years, compound interest being at 5
percent.

a) Rs. 1764 and Rs.1600 b) Rs. 1756 and Rs.1608

c) Rs. 1722 and Rs.1642 d) none

Answer Sheets ->

1) 2) 3) 4) 5) 6) 7) 8) 9) 10)
A B D D C B A A D C
11) 12) 13) 14) 15) 16) 17) 18) 19) 20)
C D A C A C B A B A
21) 22) 23) 24) 25)
B B A C A

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