Compound Interest questions and answers

20 questions in 2 online tests, each with its answer and a worked solution.

Start Test 1

Compound Interest: key points

Compound interest is interest charged on the principal and on the interest already earned, so the amount grows faster each year.

  • Amount = P(1 + R/100)n when interest is compounded annually.
  • CI = Amount − P.
  • For 2 years, CI − SI = P × (R/100)².
  • (1.1)² = 1.21, (1.1)³ = 1.331, (1.05)² = 1.1025, (1.2)² = 1.44.

How to practise Compound Interest

Start with the key points, then take one Compound Interest test without rushing. Review every explanation, note the steps you missed and repeat the topic against the clock. APTITUDE TESTER has 20 questions in 2 tests for this topic.

  • Read the method before attempting a timed test.
  • Record mistakes by type: concept, calculation or time management.
  • Return to the hardest questions after a day and try them again.

Continue with another Quantitative topic when your accuracy is steady.

Compound Interest online tests

Sample Compound Interest questions

  1. 1. Find the amount on Rs. 12,000 at 10% per annum compounded annually for 2 years.
    1. Rs. 14,520
    2. Rs. 14,400
    3. Rs. 14,280
    4. Rs. 14,760

    Reference: q-648e642a-80 · Report this question

    Show answer and solution

    Answer: A. Rs. 14,520

    A = P(1 + R/100)² = 12,000 × (1.1)² = Rs. 14,520.
  2. 2. Find the compound interest on Rs. 5,000 at 10% per annum for 2 years, compounded annually.
    1. Rs. 1,100
    2. Rs. 1,000
    3. Rs. 1,075
    4. Rs. 1,050

    Reference: q-d0500343-91 · Report this question

    Show answer and solution

    Answer: D. Rs. 1,050

    A = 5,000 × (1.1)² = Rs. 6,050. CI = Rs. 6,050 − Rs. 5,000 = Rs. 1,050.
  3. 3. What is the difference between the compound interest and the simple interest on Rs. 6,000 for 2 years at 10% per annum?
    1. Rs. 72
    2. Rs. 24
    3. Rs. 84
    4. Rs. 60

    Reference: q-ddbf9cc6-120 · Report this question

    Show answer and solution

    Answer: D. Rs. 60

    For 2 years the difference is P × (R/100)² = 6,000 × (10/100)² = Rs. 60.

See all the questions of Test 1

Compound Interest: questions people ask

How many Compound Interest questions are there?

There are 20 Compound Interest questions in 2 tests. Each test has its own page that lists the questions with their answers and solutions.

How long does a Compound Interest test take?

A test of 10 questions has a time limit of 15 minutes, which is 90 seconds a question.

Is there negative marking?

Rules vary by set. The rules screen shows the time limit, marks, any wrong-answer penalty and calculator permission before you begin. Feedback mode has no time limit or negative marking.

Can I practise Compound Interest without a time limit?

Yes. Choose practice mode: there is no clock, and the answer and solution appear as soon as you select an option.