## Compound Interest problems

• 1. The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:

• Options
• A. Rs. 2.50
• B. Rs. 3
• C. Rs. 3.75
• D. Rs. 4
• E. None of these
• 2. If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time?

• Options
• A. Rs. 51.25
• B. Rs. 52
• C. Rs. 54.25
• D. Rs. 60
• 3. Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?

• Options
• A. Rs. 8600
• B. Rs. 8620
• C. Rs. 8820
• D. None of these
• 4. The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:

• Options
• A. 6.06%
• B. 6.07%
• C. 6.08%
• D. 6.09%
• Also asked in: Bank Exams, Bank PO

• 5. What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?

• Options
• A. Rs. 9000.30
• B. Rs. 9720
• C. Rs. 10123.20
• D. Rs. 10483.20
• E. None of these
• 6. The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

• Options
• A. Rs. 400
• B. Rs. 500
• C. Rs. 600
• D. Rs. 800
• 7. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

• Options
• A. 6%
• B. 6.5%
• C. 7%
• D. 7.5%
• 8. What is the difference between the compound interests on Rs. 5000 for 1½ years at 4% per annum compounded yearly and half-yearly?

• Options
• A. Rs. 2.04
• B. Rs. 3.06
• C. Rs. 4.80
• D. Rs. 8.30
• 9. 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:

• Options
• A. Rs. 120
• B. Rs. 121
• C. Rs. 122
• D. Rs. 123
• 10. The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:

• Options
• A. 3
• B. 4
• C. 5
• D. 6
• Also asked in: Bank Exams, Bank PO