Important questions about Compound Interest. Compound Interest MCQ questions with answers. Compound Interest exam questions and answers for students and interviews.

1. Josh borrowed $250 from his mother to buy an electric scooter. Josh will pay her back in 1 year with 3% simple annual interest. How much interest will Josh pay?

Options

A : 7.50

B : 8.50

C : 9.50

D : 10.50

2. The effective annual rate of interest corresponding to nominal rate of 6% per annum payable half yearly is

Options

A : 5%

B : 6%

C : 7%

D : 6.09%

3. Find the time to double your investment at 6%

Options

A : 10years

B : 11years

C : 12years

D : 13years

4. Mr. and Mrs. Espedido?s property taxes, amounting to $2450, are due on July 1.What amount should the city accept if the taxes are paid eight months in advance and the city can earn 6% compounded monthly on surplus funds?

Options

A : 2354.17

B : 2354

C : 2376

D : 2389

6. The population of a rural region is expected to fall by 2% per year for the next 10 years. If the region?s current population is 100,000, what is the expected population 10 years from now?

Options

A : 81707

B : 91707

C : 61707

D : 71707

7. Find the compound interest on Rs.16,000 at 20% per annum for 9 months, compounded quartely.

Options

A : Rs.2522

B : Rs.2422

C : Rs.3522

D : Rs.2322

8. What is the difference between the compound interests on Rs. 5000 for 112 years at 4% per annum compounded yearly and half-yearly?

Options

A : Rs.3.06

B : Rs.2.04

C : Rs.3.65

D : Rs.5.40

9. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

Options

A : 3years

B : 2years

C : 4years

D : 6years

10. What is the rate of compound interest? I. The principal was invested for 4 years. II. The earned interest was Rs. 1491.

Options

A : I alone sufficient while II alone not sufficient to answer

B : II alone sufficient while I alone not sufficient to answer

C : Either I or II alone sufficient to answer

D : Either I or II alone sufficient to answer

1. 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

Options

A : Rs.51.25

B : Rs.61.25

C : Rs.51

D : Rs.42

2. The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is

Options

A : Rs.2

B : Rs.3

C : Rs.4

D : Rs.5

4. An amount of money was lent for 3 years. What will be the difference between the simple and the compound interest earned on it at the same rate? I. The rate of interest was 8 p.c.p.a. II. The total amount of simple interest was Rs. 1200

Options

A : I alone sufficient while II alone not sufficient to answer

B : alone sufficient while I alone not sufficient to answer

C : Both I and II are not sufficient to answer

D : Both I and II are necessary to answer

5. If you deposit $6500 into an account paying 8% annual interest compounded monthly, how much money will be in the account after 7 years?

Options

A : 11358.24

B : 12334

C : 15789

D : 12386

6. How much money would you need to deposit today at 9% annual interest compounded monthly to have $12000 in the account after 6 years?

Options

A : 9007

B : 4007

C : 7007.08

D : 8oo7

7. You deposit $300 in a savings account that pays 4% simple annual interest. Find your account balance after 9 months.

Options

A : 309

B : 409

C : 609

D : 509

8. Simon deposits $400 in an account that pays 3% interest compounded annually. What is the balance of Simon?s account at the end of 2 years?

Options

A : 424.36

B : 524.56

C : 545.36

D : 456.36

9. Jackie deposits $325 in an account that pays 4.1% interest compounded annually. How much money will Jackie have in her account after 3 years?

Options

A : 346.64

B : 356.64

C : 366.64

D : 376.64

10. Find the annual interest rate that produces $100,000 from $20,000 in 15 years.

Options

A : 9.33%

B : 10.33%

C : 11.33%

D : 12.33%

8. The minimum number of half years in which a sum of money kept at 60% compound interest will be quadrupled is ?

Options

A : 2

B : 4

C : 3

D : 6

9. A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years. The rate of interest per annum is