Compound Interest Questions and Answers


General Aptitude

Compound Interest


    1) A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:

  • A)Rs. 120
  • B)Rs. 121
  • C)Rs. 122
  • D)Rs. 123
Answer: B

    2) The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

  • A)625
  • B)630
  • C)640
  • D)650
Answer: A

    3) There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?

  • A)Rs. 2160
  • B)Rs. 3120
  • C)Rs. 3972
  • D)Rs. 6240
  • E)None of these
Answer: C

    4) What is the difference between the compound interests on Rs. 5000 for 11-div-1by2.gif years at 4% per annum compounded yearly and half-yearly?

  • A)Rs. 2.04
  • B)Rs. 3.06
  • C)Rs. 4.80
  • D)Rs. 8.30
Answer: A

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

  • A)2
  • B)2(1/2)
  • C)3
  • D)4
Answer: A