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Compound Interest questions

Compound interest and the CI − SI difference.

1. Find the compound interest on ₹2,000 at 20% per annum for 2 years, compounded annually.

  1. ₹1,056
  2. ₹881
  3. ₹878
  4. ₹880
Answer

D. ₹880 Amount = 2000 × (1 + 20/100)^2 = ₹2,880. CI = ₹2,880 − ₹2,000 = ₹880.

2. What is the difference between compound and simple interest on ₹6,500 for 2 years at 20% per annum?

  1. ₹260
  2. ₹262
  3. ₹258
  4. ₹259
Answer

A. ₹260 For 2 years, CI − SI = P × (R/100)² = 6500 × (20/100)² = ₹260.

3. A sum becomes ₹18,000 in 2 years at 50% compound interest per annum. Find the sum.

  1. ₹8,001
  2. ₹7,998
  3. ₹8,002
  4. ₹8,000
Answer

D. ₹8,000 P = 18000 ÷ (1 + 50/100)² = 18000 ÷ 2.25 = ₹8,000.

4. Find the compound interest on ₹7,000 at 20% per annum for 2 years, compounded annually.

  1. ₹3,388
  2. ₹3,850
  3. ₹3,080
  4. ₹3,078
Answer

C. ₹3,080 Amount = 7000 × (1 + 20/100)^2 = ₹10,080. CI = ₹10,080 − ₹7,000 = ₹3,080.

5. What is the difference between compound and simple interest on ₹9,500 for 2 years at 20% per annum?

  1. ₹380
  2. ₹304
  3. ₹381
  4. ₹342
Answer

A. ₹380 For 2 years, CI − SI = P × (R/100)² = 9500 × (20/100)² = ₹380.

6. A sum becomes ₹12,100 in 2 years at 10% compound interest per annum. Find the sum.

  1. ₹12,500
  2. ₹8,000
  3. ₹10,000
  4. ₹9,999
Answer

C. ₹10,000 P = 12100.000000000002 ÷ (1 + 10/100)² = 12100.000000000002 ÷ 1.2100000000000002 = ₹10,000.

7. Find the compound interest on ₹14,000 at 10% per annum for 3 years, compounded annually.

  1. ₹3,707
  2. ₹4,632
  3. ₹4,171
  4. ₹4,634
Answer

D. ₹4,634 Amount = 14000 × (1 + 10/100)^3 = ₹18,634. CI = ₹18,634 − ₹14,000 = ₹4,634.

8. What is the difference between compound and simple interest on ₹4,500 for 2 years at 20% per annum?

  1. ₹182
  2. ₹216
  3. ₹144
  4. ₹180
Answer

D. ₹180 For 2 years, CI − SI = P × (R/100)² = 4500 × (20/100)² = ₹180.

9. A sum becomes ₹11,250 in 2 years at 50% compound interest per annum. Find the sum.

  1. ₹5,002
  2. ₹4,500
  3. ₹5,000
  4. ₹3,750
Answer

C. ₹5,000 P = 11250 ÷ (1 + 50/100)² = 11250 ÷ 2.25 = ₹5,000.

10. Find the compound interest on ₹15,000 at 10% per annum for 2 years, compounded annually.

  1. ₹3,148
  2. ₹2,363
  3. ₹3,150
  4. ₹3,151
Answer

C. ₹3,150 Amount = 15000 × (1 + 10/100)^2 = ₹18,150. CI = ₹18,150 − ₹15,000 = ₹3,150.

11. What is the difference between compound and simple interest on ₹18,500 for 2 years at 5% per annum?

  1. ₹47.25
  2. ₹46.25
  3. ₹41.63
  4. ₹44.25
Answer

B. ₹46.25 For 2 years, CI − SI = P × (R/100)² = 18500 × (5/100)² = ₹46.25.

12. A sum becomes ₹10,937.5 in 2 years at 25% compound interest per annum. Find the sum.

  1. ₹8,750
  2. ₹7,000
  3. ₹5,600
  4. ₹6,300
Answer

B. ₹7,000 P = 10937.5 ÷ (1 + 25/100)² = 10937.5 ÷ 1.5625 = ₹7,000.

13. Find the compound interest on ₹11,000 at 20% per annum for 3 years, compounded annually.

  1. ₹8,008
  2. ₹8,809
  3. ₹6,406
  4. ₹10,010
Answer

A. ₹8,008 Amount = 11000 × (1 + 20/100)^3 = ₹19,008. CI = ₹19,008 − ₹11,000 = ₹8,008.

14. What is the difference between compound and simple interest on ₹19,000 for 2 years at 20% per annum?

  1. ₹684
  2. ₹761
  3. ₹759
  4. ₹760
Answer

D. ₹760 For 2 years, CI − SI = P × (R/100)² = 19000 × (20/100)² = ₹760.

15. A sum becomes ₹6,750 in 2 years at 50% compound interest per annum. Find the sum.

  1. ₹2,999
  2. ₹2,250
  3. ₹3,000
  4. ₹3,001
Answer

C. ₹3,000 P = 6750 ÷ (1 + 50/100)² = 6750 ÷ 2.25 = ₹3,000.

16. Find the compound interest on ₹7,000 at 5% per annum for 3 years, compounded annually.

  1. ₹1,104.38
  2. ₹1,379.23
  3. ₹1,103.38
  4. ₹827.54
Answer

C. ₹1,103.38 Amount = 7000 × (1 + 5/100)^3 = ₹8,103.38. CI = ₹8,103.38 − ₹7,000 = ₹1,103.38.

17. What is the difference between compound and simple interest on ₹10,500 for 2 years at 20% per annum?

  1. ₹419
  2. ₹525
  3. ₹420
  4. ₹421
Answer

C. ₹420 For 2 years, CI − SI = P × (R/100)² = 10500 × (20/100)² = ₹420.

18. A sum becomes ₹3,125 in 2 years at 25% compound interest per annum. Find the sum.

  1. ₹2,000
  2. ₹1,600
  3. ₹1,800
  4. ₹2,500
Answer

A. ₹2,000 P = 3125 ÷ (1 + 25/100)² = 3125 ÷ 1.5625 = ₹2,000.

19. Find the compound interest on ₹10,000 at 5% per annum for 2 years, compounded annually.

  1. ₹769
  2. ₹1,230
  3. ₹1,025
  4. ₹1,027
Answer

C. ₹1,025 Amount = 10000 × (1 + 5/100)^2 = ₹11,025. CI = ₹11,025 − ₹10,000 = ₹1,025.

20. What is the difference between compound and simple interest on ₹9,000 for 2 years at 20% per annum?

  1. ₹450
  2. ₹360
  3. ₹362
  4. ₹270
Answer

B. ₹360 For 2 years, CI − SI = P × (R/100)² = 9000 × (20/100)² = ₹360.

21. A sum becomes ₹13,500 in 2 years at 50% compound interest per annum. Find the sum.

  1. ₹4,800
  2. ₹6,000
  3. ₹6,002
  4. ₹5,998
Answer

B. ₹6,000 P = 13500 ÷ (1 + 50/100)² = 13500 ÷ 2.25 = ₹6,000.

22. Find the compound interest on ₹16,000 at 5% per annum for 3 years, compounded annually.

  1. ₹2,522
  2. ₹3,026
  3. ₹3,153
  4. ₹1,892
Answer

A. ₹2,522 Amount = 16000 × (1 + 5/100)^3 = ₹18,522. CI = ₹18,522 − ₹16,000 = ₹2,522.

23. What is the difference between compound and simple interest on ₹19,500 for 2 years at 20% per annum?

  1. ₹778
  2. ₹585
  3. ₹858
  4. ₹780
Answer

D. ₹780 For 2 years, CI − SI = P × (R/100)² = 19500 × (20/100)² = ₹780.

24. A sum becomes ₹8,470 in 2 years at 10% compound interest per annum. Find the sum.

  1. ₹7,000
  2. ₹7,700
  3. ₹7,002
  4. ₹6,998
Answer

A. ₹7,000 P = 8470.000000000002 ÷ (1 + 10/100)² = 8470.000000000002 ÷ 1.2100000000000002 = ₹7,000.

25. Find the compound interest on ₹9,000 at 10% per annum for 2 years, compounded annually.

  1. ₹1,889
  2. ₹2,079
  3. ₹1,701
  4. ₹1,890
Answer

D. ₹1,890 Amount = 9000 × (1 + 10/100)^2 = ₹10,890. CI = ₹10,890 − ₹9,000 = ₹1,890.

26. What is the difference between compound and simple interest on ₹3,500 for 2 years at 20% per annum?

  1. ₹140
  2. ₹105
  3. ₹175
  4. ₹139
Answer

A. ₹140 For 2 years, CI − SI = P × (R/100)² = 3500 × (20/100)² = ₹140.

27. A sum becomes ₹11,520 in 2 years at 20% compound interest per annum. Find the sum.

  1. ₹8,000
  2. ₹8,001
  3. ₹6,400
  4. ₹9,600
Answer

A. ₹8,000 P = 11520 ÷ (1 + 20/100)² = 11520 ÷ 1.44 = ₹8,000.

28. Find the compound interest on ₹13,000 at 5% per annum for 2 years, compounded annually.

  1. ₹1,332.5
  2. ₹1,199.25
  3. ₹1,665.63
  4. ₹1,599
Answer

A. ₹1,332.5 Amount = 13000 × (1 + 5/100)^2 = ₹14,332.5. CI = ₹14,332.5 − ₹13,000 = ₹1,332.5.

29. What is the difference between compound and simple interest on ₹17,500 for 2 years at 10% per annum?

  1. ₹173
  2. ₹176
  3. ₹177
  4. ₹175
Answer

D. ₹175 For 2 years, CI − SI = P × (R/100)² = 17500 × (10/100)² = ₹175.

30. A sum becomes ₹8,640 in 2 years at 20% compound interest per annum. Find the sum.

  1. ₹5,999
  2. ₹4,500
  3. ₹5,998
  4. ₹6,000
Answer

D. ₹6,000 P = 8640 ÷ (1 + 20/100)² = 8640 ÷ 1.44 = ₹6,000.

31. Find the compound interest on ₹8,000 at 10% per annum for 3 years, compounded annually.

  1. ₹2,647
  2. ₹2,649
  3. ₹2,648
  4. ₹2,650
Answer

C. ₹2,648 Amount = 8000 × (1 + 10/100)^3 = ₹10,648. CI = ₹10,648 − ₹8,000 = ₹2,648.

32. What is the difference between compound and simple interest on ₹17,000 for 2 years at 5% per annum?

  1. ₹53.13
  2. ₹40.5
  3. ₹42.5
  4. ₹31.88
Answer

C. ₹42.5 For 2 years, CI − SI = P × (R/100)² = 17000 × (5/100)² = ₹42.5.

33. A sum becomes ₹7,812.5 in 2 years at 25% compound interest per annum. Find the sum.

  1. ₹5,001
  2. ₹4,000
  3. ₹6,000
  4. ₹5,000
Answer

D. ₹5,000 P = 7812.5 ÷ (1 + 25/100)² = 7812.5 ÷ 1.5625 = ₹5,000.

34. Find the compound interest on ₹10,000 at 10% per annum for 3 years, compounded annually.

  1. ₹3,310
  2. ₹3,309
  3. ₹3,308
  4. ₹2,979
Answer

A. ₹3,310 Amount = 10000 × (1 + 10/100)^3 = ₹13,310. CI = ₹13,310 − ₹10,000 = ₹3,310.

35. What is the difference between compound and simple interest on ₹5,000 for 2 years at 10% per annum?

  1. ₹63
  2. ₹50
  3. ₹55
  4. ₹49
Answer

B. ₹50 For 2 years, CI − SI = P × (R/100)² = 5000 × (10/100)² = ₹50.

36. A sum becomes ₹15,750 in 2 years at 50% compound interest per annum. Find the sum.

  1. ₹7,000
  2. ₹7,001
  3. ₹6,999
  4. ₹8,750
Answer

A. ₹7,000 P = 15750 ÷ (1 + 50/100)² = 15750 ÷ 2.25 = ₹7,000.

37. Find the compound interest on ₹18,000 at 20% per annum for 2 years, compounded annually.

  1. ₹7,919
  2. ₹9,504
  3. ₹7,920
  4. ₹7,918
Answer

C. ₹7,920 Amount = 18000 × (1 + 20/100)^2 = ₹25,920. CI = ₹25,920 − ₹18,000 = ₹7,920.

38. What is the difference between compound and simple interest on ₹18,500 for 2 years at 20% per annum?

  1. ₹925
  2. ₹740
  3. ₹742
  4. ₹888
Answer

B. ₹740 For 2 years, CI − SI = P × (R/100)² = 18500 × (20/100)² = ₹740.

39. A sum becomes ₹3,630 in 2 years at 10% compound interest per annum. Find the sum.

  1. ₹2,998
  2. ₹2,700
  3. ₹3,600
  4. ₹3,000
Answer

D. ₹3,000 P = 3630.0000000000005 ÷ (1 + 10/100)² = 3630.0000000000005 ÷ 1.2100000000000002 = ₹3,000.

40. Find the compound interest on ₹9,000 at 5% per annum for 3 years, compounded annually.

  1. ₹1,418.63
  2. ₹1,560.49
  3. ₹1,702.36
  4. ₹1,416.63
Answer

A. ₹1,418.63 Amount = 9000 × (1 + 5/100)^3 = ₹10,418.63. CI = ₹10,418.63 − ₹9,000 = ₹1,418.63.

41. What is the difference between compound and simple interest on ₹20,000 for 2 years at 10% per annum?

  1. ₹160
  2. ₹150
  3. ₹200
  4. ₹220
Answer

C. ₹200 For 2 years, CI − SI = P × (R/100)² = 20000 × (10/100)² = ₹200.

42. A sum becomes ₹9,375 in 2 years at 25% compound interest per annum. Find the sum.

  1. ₹4,800
  2. ₹6,000
  3. ₹5,400
  4. ₹5,998
Answer

B. ₹6,000 P = 9375 ÷ (1 + 25/100)² = 9375 ÷ 1.5625 = ₹6,000.

43. Find the compound interest on ₹10,000 at 20% per annum for 2 years, compounded annually.

  1. ₹4,398
  2. ₹4,402
  3. ₹4,400
  4. ₹4,399
Answer

C. ₹4,400 Amount = 10000 × (1 + 20/100)^2 = ₹14,400. CI = ₹14,400 − ₹10,000 = ₹4,400.

44. What is the difference between compound and simple interest on ₹17,500 for 2 years at 5% per annum?

  1. ₹44.75
  2. ₹54.69
  3. ₹43.75
  4. ₹32.81
Answer

C. ₹43.75 For 2 years, CI − SI = P × (R/100)² = 17500 × (5/100)² = ₹43.75.

45. A sum becomes ₹4,500 in 2 years at 50% compound interest per annum. Find the sum.

  1. ₹1,500
  2. ₹1,600
  3. ₹1,998
  4. ₹2,000
Answer

D. ₹2,000 P = 4500 ÷ (1 + 50/100)² = 4500 ÷ 2.25 = ₹2,000.

46. Find the compound interest on ₹8,000 at 10% per annum for 2 years, compounded annually.

  1. ₹1,678
  2. ₹1,680
  3. ₹1,260
  4. ₹1,344
Answer

B. ₹1,680 Amount = 8000 × (1 + 10/100)^2 = ₹9,680. CI = ₹9,680 − ₹8,000 = ₹1,680.

47. What is the difference between compound and simple interest on ₹4,000 for 2 years at 20% per annum?

  1. ₹160
  2. ₹120
  3. ₹162
  4. ₹200
Answer

A. ₹160 For 2 years, CI − SI = P × (R/100)² = 4000 × (20/100)² = ₹160.

48. Find the compound interest on ₹12,000 at 10% per annum for 2 years, compounded annually.

  1. ₹2,016
  2. ₹3,150
  3. ₹2,520
  4. ₹3,024
Answer

C. ₹2,520 Amount = 12000 × (1 + 10/100)^2 = ₹14,520. CI = ₹14,520 − ₹12,000 = ₹2,520.

49. Find the compound interest on ₹18,000 at 10% per annum for 3 years, compounded annually.

  1. ₹7,448
  2. ₹5,958
  3. ₹5,957
  4. ₹5,362
Answer

B. ₹5,958 Amount = 18000 × (1 + 10/100)^3 = ₹23,958. CI = ₹23,958 − ₹18,000 = ₹5,958.

50. Find the compound interest on ₹17,000 at 5% per annum for 2 years, compounded annually.

  1. ₹1,740.5
  2. ₹1,742.5
  3. ₹1,916.75
  4. ₹2,091
Answer

B. ₹1,742.5 Amount = 17000 × (1 + 5/100)^2 = ₹18,742.5. CI = ₹18,742.5 − ₹17,000 = ₹1,742.5.

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