# Compound Interest Questions and Answers

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## Model Questions on Compound Interest

1. The compound interest earned by Suresh on a certain amount at the end of two years at the rate of 8 p.c.p.a was Rs 1,414.4. What was the total amount that Suresh got back at the end of two years in the form of principal plus interest earned?

A. Rs 9.414.4

B. Rs 9,914.4

C. Rs 9,014.41

D. Rs 8,914.4

E. None of these

2. The principal, which will amount to 270.40 in 2 years at the rate of 4% per annum compound interest, is

A. 200

B. 225

C. 250

D. 220

3. How much will be the compound interest to be paid on a principal amount of Rs 53,000 after 2 years at the rate of 4 p.c.p.a.?

A. Rs 4,324.8

B. Rs 4,432.8

C. Rs 4,342.8

D. Rs 4,234.8

E. None of these

4. Find the rate percent per annum, if Rs. 2000 amounts to Rs. 2,315.25 in a year and a half, interest being compounded half yearly.

A. 11.5%

B. 10%

C. 5%

D. 20%

5. The compound interest accrued on an amount at the end of two years at the rate of 16 p.c.p.a. is Rs 3041.28. What is the amount?

A. Rs 10,500

B. Rs 9,000

C. Rs 7,250

D. Rs 8,800

E. None of these

6. If the compound interest on a certain sum for 2 years at 4% p.a. is 102, the simple interest at the same rate of interest for two years would be

A. 200

B. 50

C. 150

D. 100

7. The compound interest accrued in two years on a principle amount of Rs 16,250 is Rs 5,616. What is the rate of interest pcpa?

A. 22%

B. 16%

C. 18%

D. Cannot be determined

E. None of these

8. The compound interest on a certain sum for two successive years are 225 and 238.50. The rate of interest per annum is:

A. 7.5

B. 5%

C. 10%

D. 6%

9. The compound interest accrued in two years on a principal of Rs 5,800 is Rs 7716.72. What is the rate of interest pcpa?

A. 22%

B. 16%

C. 18%

D. Cannot be determined

E. None of these

10. The difference between the compound interest and the simple interest accrued on an amount at the end of three years at the rate of 12% is Rs 381.888. What is the amount?

A. Rs 9,500

B. Rs 8,400

C. Rs 7, 200

D. Rs 8,000

E. None of these

## Sample Question Papers for Practice

11. If Rs. 10000 amounts to Rs. 11664 invested in compound interest (compounded annually) for two years then the annual rate of compound interest is

A. 10%

B. 9%

C. 8%

D. 6%

12. What is the difference between the compound interest and simple interest accrued on an amount of Rs 16,200 at the end of three years at the rate of 25%? (Rounded off to two digits after decimal.)

A. Rs 3213.44

B. Rs 3302.42

C. Rs 3495.28

D. Rs 3290.63

E. None of these

13. The time in which 80,000 amounts to 92,610 at 10% p.a. compound interest, interest being compounded semi annually is:

A. 1.5 years

B. 2 years

C. 2.5 years

D. 3 years

14. What is the difference between the compound interest and simple interest accrued on an amount of Rs 12,000 at the end of three years at the rate of 12%?

A. Rs 539.136

B. Rs 602.242

C. Rs 495.248

D. Rs 488.322

E. None of these

15. If the difference between the compound and simple interests on a certain sum of money for 3 years at 5% per annum is 15.25, then the sum is:

A. 2,000

B. 1,000

C. 1,500

D. 2,500

16. Mr X invested a certain amount in Debt and Equity Funds in the ratio of 4:5. At the end of one year, he earned a total dividend of 30% on his investment. After one year, he reinvested the amount including the dividend in the ratio of 6:7 in Debt and Equity Funds. If the amount reinvested in Equity Funds was Rs 94,500, what was the original amount invested in Equity Funds?

A. Rs 75,000

B. Rs 81,000

C. Rs 60,000

D. Rs 65,000

E. None of these

17. What would be the compound interest obtained on an amount of Rs 7640 at the rate of 15 p.c.p.a after two years?

A. Rs 2,634.9

B. Rs 2,643.9

C. Rs 2,364.9

D. Rs 2,463.9

E. None of these

18. What will be the compound interest on a sum of Rs 7500 at 4 p.c.p.a. in 2 years?

A. Rs 618

B. Rs 612

C. Rs 624

D. Rs 606

E. Rs 621

19. A sum of Rs 2200 is invested at two different rates of interest. The difference between the interests got after 4 years is Rs 202.40. What is the difference between the rates of interest?

A. 3.3%

B. 2.3%

C. 3.5%

D. 2.5%

E. None of these

20. The simple interest accrued on an amount of Rs 16,500 at the end of three years is Rs 5,940. What would be the compound interest accrued on the same amount at the same rate in the same period?

A. Rs 6681.31

B. Rs 6218.27

C. Rs 6254.82

D. Rs 6532.47

E. None of these

21. The compound interest earned on a sum is 3 years at 15% per annum compounded annually is Rs 6500.52. What is the sum?

A. Rs 12480

B. Rs 10500

C. Rs 14800

D. Rs 13620

E. None of these

## Download Previous Year Questions

22. An amount of Rs 1,00,000 is invested in two types of shares. The first yields an interest of 9% p.a. and the second, 11% p.a. If the total interest at the end of one year is 9.77 % , then the amount invested in each share was:

A. Rs 52,500, Rs 47,500

B. Rs 62, 500, Rs 31500

C. Rs 72,500, Rs 27,500

D. Rs 82, 500, Rs 17,500

E. None of these

23. A person invested in all Rs 2600 at 4%, 6% and 8% per annum simple interest. At the end of the year, he got the same interest in all the three cases. The money invested at 4% is:

A. Rs 200

B. Rs 600

C. Rs 800

D. Rs 1200

E. None of these

24. A sum of money becomes eight times in 3 years if the rate is compounded annually. In how much time, the same amount at the same compound interest rate will become sixteen times?

A. 6 years

B. 4 years

C. 8 years

D. 5 years

E. None of these

25. The difference between compound interest and simple interest on a certain sum of money for 2 years at 5% per annum is Rs. 41. What is the sum of money?

A. Rs. 7200

B. Rs. 9600

C. Rs. 16400

D. Rs. 8400

26. Find the amount which Shyam will get on Rs. 4096, if he gives it for 18 months at 12.5% per annum, interest being compounded half yearly.

A. Rs. 5,813

B. Rs. 4,515

C. Rs. 4,913

D. Rs. 5,713

27. A certain amount of money at r%, compounded annually after two and three years becomes 1440 and 1728 respectively. r is:

A. 5

B. 10

C. 15

D. 20

28. The compound interest on a certain sum of money for 2 years at 10% per annum is 420. The simple interest on the same sum at the same rate and for the same time will be

A. 350

B. 375

C. 380

D. 400

29. A man gave 50% of his savings of 84,100 to his wife and divided the remaining sum among his two sons A and B of 15 and 13 years of age respectively. He divided it in such a way that each of his sons, when they attain the age of 18 years, would receive

A. 20,000

B. 20,050

C. 22,000

D. 22,050

30. In what time will 1000 becomes 1331 at 10% per annum compounded annually?

A. 3 years

B. 2.5 years

C. 2 years

D. 3.5 years