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Compound Interest Questions and Answers

Compound Interest Questions

Formula

Definition of Compound Interest

Compound Interest is the interest calculated on the initial principal and the accumulated interest of previous periods of a deposit or loan.

Rules

  • P [1+ R/100] n
    This formula is applied to calculate when money is compounded annually.
  • P [1+ R/ (2*100)] 2n
    This formula is applied to calculate when money is compounded half-yearly
  • P [1+ R/ (12*100)] 12n
    This formula is applied when money in compounded monthly.

Question 1

Time: 00:00:00
If 50000 sums to 58694 in 2 years. Find out the compound interest.

5%

5%

4%

4%

8%

8%

9%

9%

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Question 2

Time: 00:00:00
Calculate the compound interest on Rs 9,000 at an annual rate of 15% for 2 years and 4 months?

INR 4687.875

INR 4687.875

INR 4500.08

INR 4500.08

INR 3987.76

INR 3987.76

INR 3154.34

INR 3154.34

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Question 3

Time: 00:00:00
What would be the compound interest on Rs 8000 for 4 years at 8 % per annum?

Note: the interest is calculated half-yearly.

3900

3900

2948

2948

2700

2700

4345

4345

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Question 4

Time: 00:00:00
The difference between Simple interest and compound interest for 2 years at the rate of 10% per annum on a particular amount of money is Rs20. Calculate the amount:

2000

2000

3000

3000

6000

6000

5500

5500

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Question 5

Time: 00:00:00
If the annual increase in the inhabitants of a particular city is 7% and the total number of residents in that specific locality is 13560 what will be the population of that same city in the coming 3 years?

17000

17000

18967.22

18967.22

16612

16612

19873

19873

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Question 6

Time: 00:00:00
Calculate the actual rate of interest corresponding to an itemized rate of 9% compound semi-annually.

20%

20%

10%

10%

9.20%

9.20%

8.90%

8.90%

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Question 7

Time: 00:00:00
Sumit invested in the bank on which he gets an interest of 4.9% compounded monthly. Calculate the actual interest rate.

8%

8%

8.87%

8.87%

5.01%

5.01%

7.24%

7.24%

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Question 8

Time: 00:00:00
Manoj bought a microwave on which he has to pay INR 2000 cash as a down payment. After this he is supposed to pay INR 1,500 at the completion of 1st year, INR 1,050 at the completion of 2nd year and INR 930 at the completion of 3rd The interest rate on this is 10%. Compute the total cash price:

9800

9800

5678

5678

5643

5643

4930

4930

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Question 9

Time: 00:00:00
Amanpreet invested his savings in such a way that his money grows up to INR 4645 in every two years and up to 5500 in 3 every year including the interest compounded. Calculate the interest rate applicable to earn this much of money?

20%

20%

19%

19%

19.05%

19.05%

18%

18%

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Question 10

Time: 00:00:00
Calculate the compound interest on INR 28,750 for 2 years. The interest was calculated as 4% in the first year and 8% in second year.

2500

2500

3002

3002

3798

3798

3542

3542

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Question 11

Time: 00:00:00
A particular sum of money gets 9 times in two years? What will be the compound rate of interest applicable in that case?

6

6

9

9

3

3

5

5