Practice Test on Compound Interest

Practice test on compound interest will help the students to get prepared for their grade exams after solving the objective questions on compound interest.

Tick (✔) the correct answer in each of the following:

1. The compound interest on $ 50000 at 8 % per annum for 2 years, compounded annually, is ………….

(a) $ 8000

(b) $ 8250

(c) $ 8350

(d) $ 8640

2. At what rate per cent per annum will a sum of $ 7500 amount to Rs 8427 in 2 years, compounded annually?

(a) 4 %

(b) 5 %

(c) 6 %

(d) 8 %

3. Ben deposits $ 30000 in a bank at 7% per annum compound interest for a certain time is $ 4347. The time is …………….

(a) 2 years

(b) 2¹/₂ years

(c) 3 years

(d) 4 years

4. The principal that amounts to $ 4913 in 3 years at 6¹/₄ % per annum compound interest, compounded annually, is ……………….

(a) $ 3096

(b) $ 4076

(c) $ 4085

(d) $ 4096

5. If the simple interest on a sum of money at 5% per annum for 3 years is $ 1200, then the compound interest on the same sum for the same period at the same rate will be ……………..

(a) $ 1225

(b) $ 1236

(c) $ 1248

(d) $ 1261

6. A certain sum of money gives $ 510 as compound interest 12¹/₂ % per annum for 2 years. Find the simple interest on the same sum of money at the same rate for the same period of time.

(a) $ 400

(b) $ 450

(c) $ 460

(d) $ 480

7. On a sum of $ 15000 for 2 years, if the difference between compound interest and simple interest is $ 96. Find the rate of interest per cent per annum.

(a) 6

(b) 8

(c) 10

(d) 12

Answers are given below for practice test on compound interest so that students can check the answers after solving.

Answers:

1. (c)

2. (c)

3. (c)

4. (d)

5.(d)

6. (d)

7. (b)



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