IMPORTANT

COMPOUND
INTEREST
QUESTIONS

FOR DIFFERENT BANKING EXAMS

Compound Interest Practice Questions Free e-book

Important Compound Interest Practice Questions

For Different Bank Exams

Q1) The Simple interest on a certain sum for 2 years at 10% per annum is Rs. 90. The
corresponding compound interest is:

A. 97
B. 90
C. 94.50
D. 100

Correct Answer: “C”

Q2) The SI on a certain sum of money for 3 year at 8% pa is half the CI on Rs. 8000 for
2 year at 10% pa. Find the sum placed on simple interest?

A. Rs 3500
B. Rs 3800
C. Rs 4000
D. Rs 4500

Correct Answer: “A”

Q3) Dheeraj had ₹ 23,000. He invested some amount in scheme A at SI at 20% and the
remaining amount in scheme B at CI at 10%. If Sanjay got the same amount from both
of them at the end of one year, how much (in ₹) did he invest in scheme B?

A. 15000
B. 12000
C. 11500
D. 13000

Correct Answer: “B”

Q4) What sum invested for 2 years at 12% compounded annually will grow to Rs.
4390.40?

A. 4000
B. 3875
C. 3800
D. 3500

Correct Answer: “D”

Compound Interest Practice Questions Free e-book

Q5) Divide Rs. 3903 between A and B, so that A’s Share at the end of 7 years may
equal to B’s share at the end of 9 years, compound interest being at 4 percent.

A. 2018 and 1885

B. 2028 and 1875
C. 2008 and 1895
D. 2038 and 1865

Correct Answer: “B”

Q6) What will be the compound interest on a sum of ₹ 9000 at compound interest
compounded annually at 8% per annum in two years?

A. Rs 1497.6
B. Rs 1479.6
C. Rs 1498
D. None of these

Correct Answer: “A”

Q7) ₹ 6100 was partly invested in Scheme A at 10% pa compound interest (compounded
annually) for 2 years and partly in Scheme B at 10% pa simple interest for 4 years. Both
the schemes earn equal interests. How much was invested in Scheme A?

A. Rs 4000
B. Rs 4500
C. Rs 5000
D. Rs 3250

Correct Answer: “A”

Q8) What annual payment will discharge a debt of 1025 due in 2 years at the rate of
5% compound interest?

A. 550
B. 551.25
C. 560
D. 560.35

Correct Answer: “B”

Compound Interest Practice Questions Free e-book

Q9) If the difference between the CI and SI on a sum of money at 5% per annum for 2
years is Rs.16. Find the Simple Interest?

A. 180
B. 460
C. 520
D. 640

Correct Answer: “D”

Q10) Rahul borrowed Rs. 1200 at 12% PA. He repaid Rs. 500 at the end of 1 year. What
is the amount required to pay at the end of 2nd year to discharge his loan which was
calculated in CI

A. 945.28
B. 1106.00
C. 1107.55
D. 1100.65

Correct Answer: “A”

Q11) Shivam has some amount of money and he invested the money in two schemes
A and B in the ratio of 2 : 5 for 2 years, scheme A offers 30% pa compound interest
and scheme B offers 15% pa Simple interest. Difference between the interest earned
from both the schemes is Rs.1080. How much was invested in scheme B?

A. Rs 45000
B. Rs 46000
C. Rs 40000
D. Rs 45000

Correct Answer: “A”

Q12) A sum of Rs.8584 is to be paid back in 3 equal annual installments. How much is
each installment if the interest is compounded annually at 14% per annum?

A. Rs 3700
B. Rs 4500
C. Rs 5500
D. Rs 5400

Correct Answer: “A”

Compound Interest Practice Questions Free e-book

Q13) Anjali lent Rs. 7000 to Suman for 3 years and Rs. 5000 to Sumit for 5 years on
simple interest at the same rate of interest and she received Rs. 5520 from both of
them as interest. Find the rate of interest.

A. 12 %
B. 13 %
C. 14 %
D. None of these

Correct Answer: “A”

Q14) The compound interest on Rs 7500 in 2 years when the successive rate of
interest on successive years is 8% and 10% respectively:

A. Rs 1410
B. Rs 7510
C. Rs 1497
D. Rs None of these

Correct Answer: “A”

Q15) The CI on a certain sum at 10% pa for 2yrs is Rs.6548. What is SI on the sum of
money at 7% pa for 4 years (approx)?

A. 8700
B. 8731
C. 8370
D. 8470

Correct Answer: “B”

Q16) If 40% increase in an amount in 4 years at SI. What will be the CI of Rs.10,000
after 2 yrs at the same rate?

A. 1000
B. 1100
C. 2000
D. 2100

Correct Answer: “D”

Compound Interest Practice Questions Free e-book

Q17) A sum of money doubles itself at CI in 10yrs. In how many yrs will it become 4
times?

A. 10yrs
B. 20yrs
C. 15yrs
D. 22yrs

Correct Answer: “B”

Q18) The difference between the total simple interest and the total compound interest
compounded annually at the same rate of interest on a sum of money at the end of
two years is Rs. 350. What is definitely the rate of interest per cent per annum?

A. 9,300
B. 7600
C. 12000
D. Data inadequate

Correct Answer: “D”

Q19) Rs.5200 was partly invested in Scheme A at 10% pa CI for 2 years and Partly
invested in Scheme B at 10% pa SI for 4 years. Both the schemes earn equal interests.
How much was invested in Scheme A?

A. Rs.1790
B. Rs.2200
C. Rs.3410
D. Rs.2670

Correct Answer: “C”

Q20) Mr. Binod wins Rs. 120000 on KBC. He has to pay 25% as gift tax to the
government. He places remaining money in fixed deposit @ 10% compounded
annually. However, he has to pay 20% tax on the interest. How much money does Mr.
Binod has after 4 years?

A. Rs 122444
B. Rs 112880
C. Rs 118860
D. None of these

Correct Answer: “A”

Compound Interest Practice Questions Free e-book

Q21) A lent an amount of Rs. 1100 to B. This is to be paid back to A in two

instalments. If the rate of interest, which A charges to B, be 20% compounded
annually, then what is the value of each installment?

A. Rs 730
B. Rs 720
C. Rs 710
D. Rs 780

Correct Answer: “B”

Q22) The simple interest accrued on an amount of Rs. 18,500 at the end of three years
is Rs. 7770. What would be the compound interest accrued on the same amount at the
same rate in the same period?

A. Rs 8908.56
B. Rs 8218.27
C. Rs 7754.57
D. None of these

Correct Answer: “A”

Q23) A man borrows Rs 4000 at 8% compound interest for 3 years. At the end of each
year he paid Rs 500. How much amount should he pay at the end of 3rd year to clear
the debt?

A. Rs 4254.5
B. Rs 3465.2
C. Rs 3485.2
D. Rs 3915.6

Correct Answer: “D”

Q24) The difference between compound interest earned after 3 years at 5% p.a. and
simple interest earned after 4 years at 4% p.a. is Rs 76. Find the principal amount.

A. Rs 32,000
B. Rs 28,000
C. Rs 31,500
D. Rs 32,500

Correct Answer: “A”

Compound Interest Practice Questions Free e-book

Q25) A certain amount of money is lent out at compound interest at the rate of 20%
per annum for two years, compounded annually. It would give Rs. 482 more if the
amount is compounded half yearly. Find the principle.

A. Rs 20000
B. Rs 30000
C. Rs 15000
D. Rs 25000

Correct Answer: “A”

Q26) A sum of Rs. 9960 was borrowed at 15/2% per annum compound interest and
paid back in two years in two equal annual installments. What was the amount of each
installment?

A. Rs 5345
B. Rs 5547
C. Rs 5847
D. None of these

Correct Answer: “B”

Q27) A sum of rupees 4420 is to be divided between Rakesh and Prakash in such a
way that after 5 years and 7 years respectively the amount they get is equal. The rate
of interest is 10 percent. Find the share of Rakesh and Prakash

A. 2000, 2420
B. 2420, 2000
C. 2480, 2420
D. 2210, 2210

Correct Answer: “B”

Q28) A sum of rupees 3200 is compounded annually at the rate of 25 paise per rupee
per annum. Find the compound interest payable after 2 years.

A. 1200
B. 1600
C. 1800
D. 2000

Correct Answer: “C”

Compound Interest Practice Questions Free e-book

Q29) A man lent Rs. 4500 at 30% compound interest per annum for 3 years. What is
the difference between the interest earned by the man in the 2nd year only and the
interest earned by the man in the 3rd year only?

A. Rs 526.5
B. Rs 502
C. Rs 529
D. None of these

Correct Answer: “A”

Q30) Shubham deposited Rs. 80000 in a bank which pays 10% compound interest for
2 years. Then after 2 years, he started a business with amount (sum + interest) along
with Ramesh, with capital of Rs. 60,000. Shubham invested for 6 months and left.
Ramesh invested for the whole year. What will be the ratio of their profits at the end of
the year?

A. 121:150
B. 150:221
C. 130:121
D. 155:101

Correct Answer: “A”

Q31) A man borrows 10000 rupees at 20 % compound interest for 3 years. If every
year he pays 2000 rupees as repayment. How much amount is still left to be paid by
the man?

A. 5000
B. 7000
C. 9000
D. 10000

Correct Answer: “D”

Q32) A man borrows 2000 rupees at 10% compound interest. At the end every year he
pays rupees 1000 back. How much amount should he pay at the end of the third Year
to clear all his debt?

A. 252
B. 352
C. 452
D. 552

Correct Answer: “B”

Compound Interest Practice Questions Free e-book

Q33) A sum of rupees 4420 is to be divided between Raju and Pawan in such a way
that after 5 years and 7 years respectively the amount they get is equal. The rate of
interest is 10 percent. Find the share of Raju & Pawan.

A. 2000, 2420
B. 2420, 2000
C. 2480, 2420
D. 2210, 2210

Correct Answer: “B”

Q34) There is 50% increase in an amount in 5 years at simple interest. What will be the
compound interest of Rs. 12,000 after 3 years at the same rate?

A. Rs. 2255
B. Rs. 2792
C. Rs. 3580
D. Rs. 3972

Correct Answer: “D”

Q35) A man borrows 3000 rupees at 10% compound interest. At the end every year he
pays rupees 1000 back. How much amount should he pay at the end of the fourth Year
to clear all his debt?

A. Rs. 680.5
B. Rs. 651.3
C. Rs. 751.3
D. Rs. 790.3

Correct Answer: “C”

Q36) The CI on Rs.6000 for 3 years at 8% for first year, 7% for second year, 6% for the
third year will be

A. Rs.1430
B. Rs.1530
C. Rs.1250
D. Rs.1350

Correct Answer: “D”

Compound Interest Practice Questions Free e-book

Q37) The compound interest on a certain sum for 2 years is Rs. 786 and S.I. is Rs. 750.
If the sum is invested such that the S.I. is Rs. 1296 and the number of years is equal to
the rate per cent per annum, Find the rate of interest?

A. 4%
B. 5%
C. 6%
D. 8%

Correct Answer: “C”

Q38) Akhil invests Rs. x in insurance which gives her returns at 21% annually and Rs.
y in mutual funds which gives her returns of 10% compounded half yearly. If Akhil
gets the same returns from both the investments after 1 year, then what is the square
root of the ratio of x to y?

A. 1:2
B. 11:21
C. 21:22
D. 21:25

Correct Answer: “C”

Q39) If Rs. 7200 amounts to Rs.10368 at compound interest in a certain time, then Rs.
7200 amounts to what in half of the time?

A. 8640
B. 8600
C. 8800
D. 8520

Correct Answer: “A”

Q40) What is be the compound interest (in Rs.) accrued on an amount of Rs. 15000 at
the rate of 20 per cent annum in two years, if the interest is compounded half-yearly?

A. 6196.5
B. 6916.5
C. 6961.5
D. None of these

Correct Answer: “C”

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