Compound Interest: Test 1

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Compound Interest Test 1: questions and answers

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  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

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    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

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    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

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    Answer: D. Rs. 60

    For 2 years the difference is P × (R/100)² = 6,000 × (10/100)² = Rs. 60.
  4. 4. Find the compound interest on Rs. 1,000 at 10% per annum for 3 years, compounded annually.
    1. Rs. 361
    2. Rs. 331
    3. Rs. 300
    4. Rs. 301

    Reference: q-a2014dcc-91 · Report this question

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    Answer: B. Rs. 331

    A = 1,000 × (1.1)³ = 1,000 × 1.331 = Rs. 1,331. CI = Rs. 331.
  5. 5. The difference between the compound interest and the simple interest on a sum for 2 years at 20% per annum is Rs. 300. Find the sum.
    1. Rs. 7,500
    2. Rs. 6,000
    3. Rs. 5,250
    4. Rs. 6,750

    Reference: q-9ddb5842-133 · Report this question

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    Answer: A. Rs. 7,500

    Difference = P × (R/100)², so P = 300 × (100/20)² = Rs. 7,500.
  6. 6. Find the amount on Rs. 6,000 at 10% per annum compounded annually for 2 years.
    1. Rs. 7,200
    2. Rs. 7,080
    3. Rs. 7,260
    4. Rs. 7,140

    Reference: q-df3ca051-79 · Report this question

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    Answer: C. Rs. 7,260

    A = P(1 + R/100)² = 6,000 × (1.1)² = Rs. 7,260.
  7. 7. Find the compound interest on Rs. 2,000 at 10% per annum for 2 years, compounded annually.
    1. Rs. 420
    2. Rs. 400
    3. Rs. 390
    4. Rs. 430

    Reference: q-39874c38-91 · Report this question

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    Answer: A. Rs. 420

    A = 2,000 × (1.1)² = Rs. 2,420. CI = Rs. 2,420 − Rs. 2,000 = Rs. 420.
  8. 8. What is the difference between the compound interest and the simple interest on Rs. 3,000 for 2 years at 10% per annum?
    1. Rs. 18
    2. Rs. 36
    3. Rs. 48
    4. Rs. 30

    Reference: q-6ae98a0d-120 · Report this question

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    Answer: D. Rs. 30

    For 2 years the difference is P × (R/100)² = 3,000 × (10/100)² = Rs. 30.
  9. 9. Find the compound interest on Rs. 5,000 at 10% per annum for 3 years, compounded annually.
    1. Rs. 1,705
    2. Rs. 1,655
    3. Rs. 1,500
    4. Rs. 1,505

    Reference: q-2a307848-91 · Report this question

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    Answer: B. Rs. 1,655

    A = 5,000 × (1.1)³ = 5,000 × 1.331 = Rs. 6,655. CI = Rs. 1,655.
  10. 10. The difference between the compound interest and the simple interest on a sum for 2 years at 10% per annum is Rs. 50. Find the sum.
    1. Rs. 4,000
    2. Rs. 4,500
    3. Rs. 5,000
    4. Rs. 5,500

    Reference: q-276b3a45-132 · Report this question

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    Answer: C. Rs. 5,000

    Difference = P × (R/100)², so P = 50 × (100/10)² = Rs. 5,000.

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