The difference between the compound interest and the simple interest on a sum for 3 years at 20% per annum is Rs. 1,152. What is the simple interest on the sum for 3 years?
Correct answer D. Rs. 5,400
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Compound Interest MCQs
Compound Interest MCQs are aptitude questions on how money grows when interest is added to the principal and then earns interest itself, including rate, time and differences from simple interest. They help banking, staff selection and recruitment test candidates. Every question shows its correct answer instantly, so you can check calculations as you work.
- Numbers 104
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- Age Questions 95
- Profit and Loss 82
- Ratio and Proportion 80
- Time and Work 73
- Alligation or Mixture 73
- Fraction and Decimal 72
- Compound Interest 71
- Simple Interest 69
- Area 64
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- Equations and Inequalities 64
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- Simplification 60
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- Average 59
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- Problems on Numbers 47
- Probability 45
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- True Discount 36
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- Banker's Discount 32
- Counting 32
- Logarithm 30
- Problems on H.C.F and L.C.M 30
- Calendar 30
- Road Problems 26
- Word Problems 25
- Men and Food 24
What sum invested now at 8% per annum compound interest will amount to Rs. 29,160 in 2 years?
Correct answer A. Rs. 25,000
What is the compound interest on Rs. 6,912 for 3 years at 16 2/3% per annum, compounded annually?
Correct answer A. Rs. 4,064
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What is the compound interest on Rs. 6,400 for 2 years at 12.5% per annum, compounded annually?
Correct answer A. Rs. 1,700
Rs. 62,500 amounts to Rs. 67,600 in 6 months when interest is compounded quarterly. What is the annual rate of interest?
Correct answer A. 16%
The population of a town is 50,000. It rises by 10% in the first year and falls by 10% in the second year. What is the population after 2 years?
Correct answer D. 49,500
What is the compound interest on Rs. 15,000 for 2 years if the rate is 5% for the first year and 8% for the second year?
Correct answer A. Rs. 2,010
On a certain sum for 2 years, the compound interest is Rs. 2,544 and the simple interest is Rs. 2,400 at the same rate. What is the rate of interest per annum?
Correct answer D. 12%
The ratio of the compound interest to the simple interest on a sum for 2 years at the same rate is 41 : 40. What is the rate of interest per annum?
Correct answer C. 5%
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What is the compound interest on Rs. 50,000 for 9 months at 16% per annum, compounded quarterly?
Correct answer B. Rs. 6,243.20
At what rate per annum, compounded half-yearly, will Rs. 32,000 become Rs. 35,280 in 1 year?
Correct answer B. 10%
What is the compound interest on Rs. 10,000 for 2.5 years at 10% per annum, compounded annually (simple interest for the part year)?
Correct answer A. Rs. 2,705
A sum at compound interest amounts to Rs. 13,225 in 2 years and to Rs. 15,208.75 in 3 years. What is the rate of interest per annum?
Correct answer D. 15%
A sum at compound interest amounts to Rs. 4,840 in 2 years and to Rs. 5,324 in 3 years. What is the sum?
Correct answer D. Rs. 4,000
A sum of money doubles itself in 4 years at compound interest. In how many years will it become 8 times itself?
Correct answer B. 12 years
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What is the difference between the compound interest on Rs. 20,000 for 1 year at 10% per annum compounded half-yearly and compounded annually?
Correct answer A. Rs. 50
What is the effective annual rate of interest, correct to two decimal places, for a nominal rate of 8% per annum compounded quarterly?
Correct answer A. 8.24%
The simple interest on a sum for 2 years at 8% per annum is Rs. 1,440. What is the compound interest on the same sum for 2 years at the same rate?
Correct answer B. Rs. 1,497.60
The compound interest on a sum for 2 years at 5% per annum is Rs. 1,230. What is the simple interest on the same sum at the same rate for the same time?
Correct answer C. Rs. 1,200
Rs. 9,000 is invested at 10% per annum compound interest. What is the interest earned in the second year alone?
Correct answer C. Rs. 990
About Compound Interest MCQs
Questions here use the formula A = P(1 + r/100)^n and its variations. You will find items on finding the rate at which Rs. 1200 becomes Rs. 1348.32 in two years, the difference between simple and compound interest over two or three years, and comparing yearly with half-yearly compounding. Some are data sufficiency questions, asking which statements are enough to find the compound interest. A useful shortcut is that for two years, CI minus SI equals P(r/100) squared, which saves time in exams.
Exams that include Compound Interest MCQs
Pakistan
- NTS
- PPSC
- FPSC
- Banking job tests
India
- IBPS PO
- IBPS Clerk
- SBI PO
- SSC CGL
- RRB NTPC
Bangladesh
- Bank job exams
- Bangladesh Bank recruitment
- BCS
Frequently asked questions
What is the formula for compound interest?
The amount is A = P(1 + r/100)^n, where P is the principal, r the annual rate and n the number of years. Compound interest is A minus P. For half-yearly compounding, halve the rate and double the number of periods.
What is the difference between simple and compound interest for two years?
For two years, compound interest exceeds simple interest by P(r/100)^2. For example, on Rs. 5,000 at 10 per cent, the difference is 5,000 x 0.01, which is Rs. 50. For three years, the difference is P(r/100)^2 multiplied by (3 + r/100).
Last reviewed October 2026