Online Test — Compound Interest
10 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 10
medium
Compound interest is calculated on:
Only principal
Only interest
Principal + previous interest
None of these
Explanation: CI includes interest on interest
Question 2 of 10
medium
The formula for amount in compound interest is:
A = P(1 + nr/100)
A = P(1 + r/100)ⁿ
A = P + (P×r×n)/100
A = P(1 + r)ⁿ
Explanation: Standard compound interest formula
Question 3 of 10
medium
Find CI on ₹5000 at 10% p.a. for 2 years:
₹1000
₹1050
₹1100
₹1150
Explanation: A=5000(1.1)²=6050, CI=1050
Question 4 of 10
medium
If compounded half-yearly, rate becomes:
r/2
r/4
2r
r
Explanation: Half-yearly rate = annual rate/2
Question 5 of 10
medium
The value of a machine depreciates by 5% each year. If present value is ₹40000, value after 2 years is:
₹38000
₹36100
₹36000
₹40000
Explanation: A=40000(0.95)²=40000×0.9025=36100
Question 6 of 10
medium
On ₹1000 at 10% p.a. for 1 year compounded half-yearly, CI is:
₹100
₹102.50
₹105
₹110
Explanation: Half-yearly: A=1000(1.05)²=1102.50, CI=102.50
Question 7 of 10
medium
The compound interest on ₹2000 for 2 years at 5% p.a. is:
₹200
₹205
₹210
₹215
Explanation: A=2000(1.05)²=2205, CI=205
Question 8 of 10
medium
For quarterly compounding, number of periods in 2 years is:
2
4
6
8
Explanation: 4 quarters per year × 2 years = 8
Question 9 of 10
medium
If a population increases at 2% per year, after 3 years it becomes:
P(1.02)³
P(0.98)³
P(1.02)²
P(1.2)³
Explanation: Appreciation formula with plus sign
Question 10 of 10
medium
A sum becomes ₹6050 in 2 years at 10% p.a. CI. The sum is:
₹5000
₹5200
₹5500
₹5800
Explanation: P = A/(1.1)² = 6050/1.21 = 5000