compound interest MCQs – Page 2

Practise focused compound interest questions with marked answers for exam preparation and subject revision.

compound interest Mcqs
51. In one year, the population, of a village increased by 10% and in the next year, it decreased by 10%. If at the end of 2nd year, the population was 7920, what was it in the beginning?
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A. 8000

B. 8500

C. 8400

D. 8100

52. The Compound interest on Rs 16000 for 9 months at 20% P.a compounded quarterly is:__________?
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A. Rs 2518

B. Rs 2522

C. Rs 2524

D. Rs 2520

53. 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:__________?
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A. Rs 1050

B. Rs 900

C. Rs 1000

D. Rs 1100

54. A sum of money invested at C.I. amounts to Rs. 800 in 3 years to Rs. 840 in 4 years. The rate of interest per annum is______?
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A. 2.50%

B. 5%

C. 4%

D. 6.67%

55. Find the sum lend at C.I. at 5 p.c per annum will amount to Rs.441 in 2 years?
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A. Rs.400

B. Rs.380

C. Rs.420

D. Rs.375

56. 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?
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A. 22% p.a.

B. 20% p.a.

C. 18% p.a.

D. 24% p.a.

E. None of these.

57. 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)
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A. Rs.20264.46

B. Rs.20043.94

C. None of these

D. Rs.18654.81

E. Rs.19612.41

58. The sum of money at compound interest amounts to thrice itself in 3 years. In how many years will it be 9 times itself?
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A. 12

B. 6

C. 9

D. 18

59. 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 (in Rs. ) is_________?
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A. 630

B. 625

C. 640

D. 650

60. How much would a sum of Rs 16000 approximately amount to in 2 years at 10% P.a compounded half-yearly?
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A. Rs 18973

B. Rs 19880

C. Rs 17423

D. Rs 19448
61. 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?
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A. None of these

B. Rs.25.20

C. Rs.27.80

D. Rs.24.00

E. Rs.21.60
62. At what rate of interest will be Rs 20000 becomes Rs 24200 after 2 years when interest is compounded annually?
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A. 15%

B. 6%

C. 5%

D. 10%
63. The principal that amounts to Rs. 4913 in 3 years at 6 1/4 % per annum C.I. compounded annually, is_________??
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A. Rs. 4096

B. Rs. 3096

C. Rs. 4076

D. Rs. 4085

64. The least number of complete years in which a sum of money put out at 20% C.I. will be more than doubled is_________?
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A. 6

B. 3

C. 4

D. 5

65. There is 60% increase in an amount in 6 years at S.I. What will be the C.I. of Rs. 12,000 after 3 years at the same rate?
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A. Rs. 3120

B. Rs. 2160

C. Rs. 6240

D. Rs. 3972
66. A sum of money becomes Rs.6690 after three years and Rs.10.035 after six years on compound interest. The sum is________?
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A. Rs.4520

B. Rs.4400

C. Rs.4460

D. Rs.4445

67. 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?
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A. Rs.7000

B. Rs.6500

C. None of these

D. Rs.7500

E. Rs.8000

68. 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:_______?
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A. Rs. 1750

B. Rs. 1650

C. Rs. 1550

D. Rs. 2000

69. 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_________?
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A. Rs 5000

B. Rs 6000

C. Rs 5500

D. Rs 4500

70. What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5% compound interest?
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A. Rs. 551.25

B. Rs. 560

C. Rs. 560.75

D. Rs. 550

71. Find the amount on Rs.5000 in 2 years, the rate of interest being 4% per first year and 5% for the second year?
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A. Rs.460

B. Rs.5604

C. Rs.5640

D. Rs.5460
72. 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:_________?
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A. Rs 232

B. Rs 230

C. Rs 832

D. Rs 600

73. Find the Compound Interest on Rs. 15,625 for 9 months at 16% per annum compounded quarterly?
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A. Rs. 1961

B. Rs. 1951

C. Rs. 1941

D. Rs. 1851

74. What is the difference between the compound interest on Rs.12000 at 20% p.a. for one year when compounded yearly and half yearly?
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A. Rs.130

B. Rs.140

C. None of these.

D. Rs.120

E. Rs.110

75. The compound interest on a certain sum of money for 2 years at 10 % per annum is Rs.420. The simple interest on the same sum at the same rate and for the same time will be_______?
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A. Rs. 380

B. Rs.375

C. Rs. 400

D. Rs.350

76. 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?
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A. Rs.10,560

B. Rs.10,720

C. Rs.10,840

D. Rs.10,280

E. None of these.

77. What is the difference between the C.I. on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?
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A. Rs. 8.30

B. Rs. 3.06

C. Rs. 4.80

D. Rs. 2.04
78. 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.
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A. Rs.19,828.80

B. Rs.18,028.80

C. None of these

D. Rs.18,828.80

E. Rs.17,828.80

79. 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_________?
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A. Rs 1625.80

B. Rs 1600

C. Rs 1575.20

D. Rs 2000

80. A sum of money deposited at C.I. amounts to Rs.2420 in 2 years and to Rs.2662 in 3 years. Find the rate percent?
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A. 10%

B. 8%

C. 7.50%

D. 15%

81. Every year an amount increases by 1/8th of itself. How much will it be after two years if its present value is Rs.64000?
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A. Rs.75000

B. Rs.81000

C. Rs.80000

D. Rs.64000

82. Find the amount on Rs.8000 in 9 months at 20% per annum, if the interest being compounded quarterly?
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A. Rs.9261

B. Rs.9621

C. Rs.9162

D. Rs.1261

83. 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?
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A. Cannot be determined

B. 10

C. 12

D. 8
84. Find the sum The difference between the compound and S.I. on a certain sum of money for 2 years at 10% per annum is Rs.15of money?
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A. 1950

B. 1500

C. 1800

D. 2100

85. 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.
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A. Rs.18500

B. None of these.

C. Rs.17500

D. Rs.17000

E. Rs.18000

86. 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_________?
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A. Rs 600

B. Rs 832

C. Rs 230

D. Rs 232
87. 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?
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A. Rs. 60

B. Rs. 54.25

C. Rs. 51.25

D. Rs. 52

88. 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:___________?
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A. 6%

B. 10%

C. 8%

D. 12%
89. 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)
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A. None of these

B. Rs.4613

C. Rs.4064

D. Rs.4266

E. Rs.4273

90. What is the principle amount which earns Rs.132 as compound interest for the second year at 10 % per annum?
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A. Rs. 1000

B. Rs. 1200

C. None of these

D. Rs. 1320

91. The population of a city increases at the rate of 4% p.a. but there is an additional annual increase of 1% in the population due to some job seekers. The percentage increase in the population after 2 years is_________?
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A. 11

B. 10

C. 10.25

D. 10.15

92. The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is________?
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A. 6.07%

B. 6.09%

C. 6.08%

D. 6.06%

93. If Rs.7500 are borrowed at C.I at the rate of 4% per annum, then after 2 years the amount to be paid is_______?
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A. Rs.8112

B. Rs.8082

C. Rs.8100

D. Rs.7800

94. Simple interest on a sum at 4% per annum for 2 years is Rs.80. The C.I. on the same sum for the same period is_______?
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A. Rs.99

B. Rs.1081.60

C. Rs.160

D. Rs.81.60
95. Rs.8000 become Rs.9261 in a certain interval of time at the rate of 5% per annum of C.I. Find the time?
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A. 3 years

B. 4 years

C. 2 years

D. 6 years

96. At the end of three years what will be the compound interest at the rate of 10% p.a. on an amount of Rs.20000?
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A. Rs.6400

B. Rs.6620

C. Rs.6500

D. Rs.6800

97. Find the C.I. on a sum of Rs.1600 for 9 months at 20% per annum, interest being compounded quarterly?
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A. Rs.1684

B. Rs.3408

C. Rs.17684

D. Rs.2522
98. The C.I. on a certain sum for 2 years Rs.41 and the simple interest is Rs.40. What is the rate percent?
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A. 4%

B. 8%

C. 5%

D. 6%

99. Find out the C.I on Rs.5000 at 4% p.a. compound half-yearly for 1 1/2 years.
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A. Rs.319.06

B. Rs.306.04

C. Rs.294.75

D. Rs.420.20

100. Find the compound interest and the amount on Rs.8000 at 5% per annum for 3 years when C.I is reckoned yearly?
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A. Rs.1440

B. Rs.1346

C. Rs.1185

D. Rs.1261