COMPOUND INTEREST

1. The sum of money that yields a compound interest of Rs. 420 during the second year at 5% p.a.
is
(a) Rs.4000 (b) Rs.4200 (c) Rs.8000 (d) Rs.42000
2. A sum becomes Rs. 1,352 in 2 years at 4% per annum compound interest. The sum is
(a)Rs 1225 (b)Rs 1270 (c)Rs 1245 (d)Rs 1250
3. The compound interest on a certain sum for two years at 20% per annum is Rs 770. If the same
sum is lent for 3 years at simple interest for 1% per month, find the interest obtained on the
sum.
(a)Rs 525 (b) Rs 550 (c) Rs 660 (d) Rs 630
4. A sum of money doubles itself at compound interest in 15 years. In how many years it will
become eight times?
(a) 30 (b) 45 (c) 50 (d) 60
5. Compound interest (compounded annually) on a certain sum of money for 2 years at 4% per
annum is Rs.102. The simple interest on the same sum for the same rate and for the same period
will be:
(a) Rs.99 (b) Rs.101 (c) Rs.100 (d) Rs.98
6. The compound interest on Rs. 10,000 in 2 years at 4% per annum, the interest being
compounded half-yearly, is :
(a) Rs. 636.80 (b) Rs. 824.32 (c) Rs. 912. 86 (d) Rs. 828. 82
7. In what time will Rs. 1000 becomes 1331 at 10% per annum compounded annually ?

(a) 3 years (b) (c) 2 years (d)

8. The compound interest on Rs.6,000 at 10% per annum for years, when the interest being

compounded annually, is
(a) Rs. 6910 (b) Rs.6870 (c) Rs.6930 (d) Rs.7900
9. The compound interest on a sum of money for 2 years is Rs.615 and the simple interest for the
same period is Rs.600. Find the principal.
(a) Rs. 6,500 (b) Rs.6,000 (c)Rs. 8,000 (d) Rs.9,500
10. A sum of money doubles itself in 6 years at a certain rate of compound interest. In how many
years will be 16 times at the same rate of interest?
(a)18 years (b)24 years (c)30 years (d)12 years
11. The compound interest on Rs.16,000 for 9 months at 20% per annum, interest being
compounded quarterly, is
(a) Rs.2,520 (b) Rs.2,524 (c) Rs.2,522 (d) Rs.2,518
12. If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, the
compoundinterest on the same at the same rate and for the same time is ?
(a) Rs. 50.50 (b) Rs. 51.25 (c) Rs. 51.50 (d) Rs. 50.05
13. The compound interest on a certain sum of money at 5%per annum for 2 years is Rs. 246. The
simple interest on the same sum for 3 years at 6% per annum is
(a) Rs.435 (b) Rs.450 (c) Rs.430 (d) Rs.432
14. A sum is invested for three years at compound interest of 8%, 10% and 20% respectively. Find
the sum if at the end of three years, it becomes Rs.14256.
(a) Rs.5000 (b) Rs.9000 (c) Rs.8000 (d) Rs.10000
15. A certain sum of money yields Rs.1261 as compound interest for 3 years at 5% per annum. The
sum is

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(a) Rs.9000 (b) Rs.8400 (c) Rs.7500 (d) Rs.8000
16. The compound interest on Rs. 10,000 in 2 years at 4% per annum, the interest being
compounded half-yearly, is :
(a) Rs. 636.80 (b) Rs. 824.32 (c) Rs. 912. 86 (d) Rs. 828. 82
17. In what time will Rs. 1000 becomes 1331 at 10% per annum compounded annually ?

(a) 3 years (b) (c) 2 years (d)

18. At what rate per annum will Rs.32000 yield a compound interest of Rs.5044 in 9 months interest
being compounded quarterly ?
(a) 20% (b) 32% (c) 50% (d) 80%
19. In what time will Rs.10,000 amount to Rs.13310 at 20% per annum compounded half yearly?

(a) (b) 2 years (c) (d) 3 yeasr

20. A certain sum, invested at 4% per annum compound interest, compounded halfyearly, amounts
to Rs.7,803 at the end of one year.
The sum is
(a) Rs.7,000 (b) Rs.7,200 (c) Rs.7,500 (d) Rs.7,700

21. The compound interest on Rs.6,000 at 10% per annum for years, when the interest being

compounded annually, is
(a) Rs. 910 (b) Rs. 870 (c) Rs.930 (d) Rs.900
22. At what rate per cent per annum will a sum of Rs.1,000 amounts to Rs.1,102.50 in 2 years at
compound interest ?
(a) 5% (b) 5.5% (c) 6% (d) 6.5%
23. An amount of 6,000 lent at 5% per annum compound interest for
2 years will become
(a) Rs.600 (b) Rs. 6,600 (c) Rs. 6,610 (d) Rs. 6,615
24. The compound interest on Rs.30,000 at 7% per annum for a certain time is Rs.4,347. The time is
(a) 3 years (b) 4 years (c) 2 years (d) 2.5 years
25. A principal of Rs.10,000, after 2 years compounded annually, the rate of interest being 10% per
annum during the first year and 12% per annum during the second year (in rupees) will amount
to :
(a) 12,000 (b) 12,320 (c) 12,500 (d) 11,320
26. A man saves Rs.2000 at the end of each year and invests the money at 5% compound interest.
At the end of 3 years he will have :
(a) Rs.4305 (b) Rs. 6305 (c) Rs. 4205 (d) Rs. 2205
27. A man borrows Rs.21000 at 10% compound interest. How much he has to pay annually at the
end of each year, to settle his loan in two years ?
(a) Rs.12000 (b) Rs.12100 (c) Rs.12200 (d) Rs. 12300
28. The compound interest on Rs.5,000 for 3 years at 10% p. a. will amount to
(a) Rs.1,654 (b) Rs.1,655 (c) Rs. 1,600 (d) Rs.1,565
29. The compound interest on a certain sum of money for 2 years at 5% is Rs.328, then the sum is
(a) Rs.3000 (b) Rs.3600 (c) Rs. 3200 (d) Rs.3400
30. The compound interest on a sum of money for 2 years is Rs.615 and the simple interest for the
same period is Rs.600. Find the principal.
(a) Rs. 6,500 (b) Rs.6,000 (c)Rs. 8,000 (d) Rs.9,500

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31. When principal = Rs. S, rate of interest =2r % p.a, then a person will get after 3 years at
compound interest.

(a) (b) (c) (d)

32. What does Rs.250 amounts to in 2 years with compound interest at the rate of 4% in the 1st
year and 8% in the second year ?
(a) Rs.280 (b) Rs.280.80 (c) Rs.468 (d)Rs. 290.80

33. A sum of money placed at compound interest doubles itself in 5 years. It will amount to eight
times of itself at the same rate of interest in
(a) 20 years (b) 10 years (c) 12 years (d) 15 years

34. A man borrowed some money and agreed to pay-off by paying Rs. 3150 at the end of the 1st
year and Rs. 4410 at the end of the 2nd year. If the rate of compound interest is 5% per annum,
then the sum is
(a) Rs. 5000 (b) Rs. 6500 (c) Rs. 7000 (d) Rs. 9200

35. B borrows Rs.5,000 from A at 6% p.a. simple interest and lends it to C at compound interest of
10% p.a. If B collects the money back from C after 2 years and repays A, the profit made by B in the
transaction is
(a) Rs. 1,050 (b)Rs. 500 (c) Rs. 450 (d)Rs. 600
36. The difference between the simple interest and the compound interest obtained on a principal
amount at 5 pc pa after 2 year is Rs.35. What is the principal amount?
(a) Rs.12000 (b) Rs.14000 (c) Rs.16000 (d) Rs.13000

37. The difference between compound interest and simple interest on a sum of money for 2 years at
per annum is Rs.150. The sum is?
(a) Rs.9000 (b) Rs.9200 (c) Rs.9500 (d) Rs.9600
38. If the difference between the compound interest, compounded every six months, and the simple
interest on a certain sum of money at the rate of 12% per annum for one year is Rs.36, the sum
is :
(a) Rs.10,000 (b) Rs.12,000 (c) Rs.15,000 (d) Rs.9,000
39. On what sum does the difference between the compound interest and the simple interest for
3years at 10% is Rs. 31 ?
(a) Rs.1500 (b) Rs.1200 (c) Rs.1100 (d) Rs.1000
40. The difference between the compound interest and simple interest for the amount Rs.5,000 in
2years is Rs.32. The rate of interest is
(a) 5% (b) 8% (c) 10% (d) 12%
41. The difference between the simple and compound interest on a certain sum of money at 5%rate
of interest per annum for 2 years is Rs.15. Then the sum is :
(a) Rs.6,500 (b) Rs.5,500 (c) Rs.6,000 (d) Rs.7,000
42. The difference between the compound interest and simple interest on a certain sum for 2 years
at 10% per annum is Rs.300. Find the sum.
(a) Rs.31,000 (b) Rs.31,500 (c) Rs.30,000 (d) Rs.30,500
43. If the compound interest on a sum for 2 years at per annum is 510, the simple

intereston the same sum at the same rate for the same period of time is ?
(a) Rs.400 (b) Rs.480 (c) Rs. 450 (d) Rs.460
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44. A man borrowed some money from a private organization at 5% simple interest per annum.
Helanded 50% of this money to another person at 10% compound interest per annum and there
by the man made a profit of Rs. 3,205 in 4 years. How much amount the man borrowed?
(a) Rs. 80,000 (b) Rs. 1,00,000 (c) Rs. 1,20,000 (d) Rs. 1,50,000
45. B borrows Rs.5,000 from A at 6% p.a. simple interest and lends it to C at compound interest
of10% p.a. If B collects the money back from C after 2 years and repays A, the profit made by B
in the transaction is?
(a) Rs. 1,050 (b)Rs. 500 (c) Rs. 450 (d)Rs. 600
46. If the amount is 2.25 times of the sum after 2 years at compound interest (compound annually)
the rate of interest per annum is?
(a) 25% (b) 30% (c) 45% (d) 50%

47. If the compound interest on a sum for 2 years at per annum is Rs.510, the simple
interest on the same sum at the same rate for the same period of time is:
(a) Rs.400 (b) Rs.480 (c) Rs.450 (d) Rs.460
48. An amount is invested in a bank at compound rate of interest. The total amount, including
interest, after first and third year is Rs.1200 and Rs.1587, respectively. What is the rate of
interest?
(a) 10% (b) 3.9% (c) 12% (d) 15%
49. There is 60% increase in an amount in 6 yr at simple interest. What will be the compound
interest on Rs.12000 after 3 yr at the same rate of interest?
(a) Rs.2160 (b) Rs.3120 (c) Rs.3972 (d) Rs.6240
50. If the rate of interest be 4% per annum for first year, 5% per annum for second year and 6% per
annum for third year, then the compound interest of 10,000 for 3 years will be
(a) Rs.1,600 (b) Rs.1,625.80 (c) Rs.1,575.20 (d) Rs.2,000

EXPLANATION:

1. c;
Let the principal = x
Amount after 1st year =1.05 x
Amount after 2nd year = 1.05  1.05x = 1.1025 x
Interest for 2nd year =
Now, 0.0525x = 420
2. d;

Principal = 25, Amount = 26

Hence, required sum = Rs.1250

3. d
let the sum be P.
CI = P(1 + )2 – P = 770
=> 1.44P – P = 770
=> 0.44P = 770
=> P = 1750
Now rate of interest = 1% pm = 12% p.a.

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SI = =Rs 630
4. b;

2P = P

times
Required time = years
5. c;

Let principal be Rs.P

According to question,

Where r = 4% and t = 2 years

P= Rs.1250

Simple interest at rate of 4% for 2 years

= Rs.100
Required answer is Rs.100
6. b;

Interest
= 10,824.3216 – 10,000
= Rs.824.32
7. a;
Let the required time be n years.
Then,

8. c;
Amount

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9. b;
C.I. – S.I.

10. b;

P becomes 2P in 6 years at r% p.a.

11. c;
The interest is compounded quarterly.

12. b;

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Principal =

13. d;

14. d;

Let the sum be x.

Then, Rs.14256
Rs.
15. d;
Let the principal be Rs.x. Now,

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16. b;

Interest
= 10,824.3216 – 10,000
= Rs.824.32
17. a;
Let the required time be n years.
Then,

18. a;
Let the rate of CI be R per cent per annum.

[ Interest is compounded quarterly]

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19. a;
The rate of interest is compounded half yearly,
r = 10% per half year

Let time = 2 years = half years

According to the question,

Amount =

20. c;
Let the sum be P.
As, the interest is compounded half-yearly,
R = 2%, T = 2 half years

21. c;
Amount

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22. a;

Let rate be 'r '

23. d;

24. c;

25. b;

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26. b;
Amount

Required amount
= 4305 +2000 = Rs.6305
27. b;
If each instalment be x, then Present worth of first instalment

Present worth of second instalment

28. b;

29. c;
Let the principal be Rs.P

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30. b;
C.I. – S.I.

31. c;
Principal (P) = Rs.S
Rate (R) = 2% per annum

32. b;

33. d;

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 COMPOUND INTEREST

On cubing both sides,

Required time = 15 years

34. c;

= Rs. (3000 + 4000)

= Rs. 7000
35. c;
Interest got by A

C.I. received by B
36. b;

Difference = sum

Or, 35 = sum

Sum = Rs.14000
37. d;
Suppose the sum is Rs.x

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Simple interest = Rs.

Compound interest =

= Rs.
Now, CI – SI = 150
Or, or,
Rs.9600
38. a;
As the interest was compounded half-yearly, we changed r to and t to 2t.
T = 1 year & R 6%
Sum

39. d;
Here, C.I. – S.I. = Rs.31
R = 10%, T = 3 years, P = ?
C.I. – S.I.

40. b;
Difference of 2 years

41. c;
C.I. – S.I. = Rs. 15, R = 5%, T = 2 years, P =?

42. c;
Difference =

43. b;
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 COMPOUND INTEREST
Here, C.I = Rs.510

44. b;

Sum borrowed = Rs. x

Simple interest after 4 years

Amount lent of on compound interest

45. d;

Interest got by A

C.I. received by B
46. d;
Suppose P = 100

amount = 225

A=P

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Or,

Or,

Or,

Or,

Or,

Or,
Or,
47. b;

48. d;
Let amount be Rs.x and rate of interest be r% annually.
According to the question,
Amount after 1st year = Rs.1200
……. (i)

Amount after 3rd year = 1587

…… (ii)

On dividing equation (ii) by equation (i),

49. c;
Let the principal be Rs.x.
Then, SI = Rs.

SI =

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[ time = 6 yr]

r = 10%
Again, principal (P) = Rs.12000.
Time (n) = 3 yr

Amount = P

=
= Rs.15972
CI = A – P = 15972 – 12000 = Rs.3972
50. c;
Amount

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