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Compound Interest Questions with Answers

Interest on interest, varying compounding periods, and the gap between simple and compound returns. This page pools every compound interest question on the site (110 of them, from 46 exams, weighted towards Banking, Management, SSC) so you can drill the topic on its own instead of meeting four of them inside a full paper.

43% of the pool is graded hard on this site’s own scale and 2% easy, which is harder than the average topic in this section.

Questions
110
Practice set
25 in 25 min
Difficulty
2/61/47
Negative marking
None
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Compound Interest questions with solutions

6 from the 110-question pool, worked in full.

  1. 1. Find the difference between compound interest and simple interest on ₹8,000 for 2 years at 12% per annum.

    • A. ₹105.20
    • B. ₹110.20
    • C. ₹115.20 ✓
    • D. ₹120.20

    Solution. SI = (8,000×12×2)/100 = ₹1,920. Amount at CI = 8,000×1.12² = 8,000×1.2544 = ₹10,035.20, so CI = ₹2,035.20. Difference = 2,035.20 − 1,920 = ₹115.20.

  2. 2. Find the compound interest on ₹28,000 at 5% per annum for 2 years, compounded annually.

    • A. ₹2,870 ✓
    • B. ₹2,800
    • C. ₹2,750
    • D. ₹2,900

    Solution. Amount = 28,000 × (1.05)² = 28,000 × 1.1025 = ₹30,870. CI = 30,870 − 28,000 = ₹2,870.

  3. 3. Find the compound interest on ₹9,000 at 20% per annum for 1 year, compounded half-yearly.

    • A. ₹1,700
    • B. ₹1,800
    • C. ₹1,890 ✓
    • D. ₹1,900

    Solution. Half-yearly rate = 10%, 2 periods. Amount = 9000 × 1.1 × 1.1 = 10,890. CI = 10,890 - 9,000 = ₹1,890.

  4. 4. Find the compound interest on ₹32,000 at 5% per annum for 2 years, compounded annually.

    • A. ₹3,280 ✓
    • B. ₹3,000
    • C. ₹3,200
    • D. ₹3,100

    Solution. Amount = 32,000 × (1.05)² = 32,000 × 1.1025 = ₹35,280. CI = 35,280 − 32,000 = ₹3,280.

  5. 5. Find the compound interest on ₹60,000 at 5% per annum for 2 years, compounded annually.

    • A. ₹6,000
    • B. ₹6,050
    • C. ₹6,100
    • D. ₹6,150 ✓

    Solution. Amount = 60,000 × (1.05)² = 60,000 × 1.1025 = ₹66,150. CI = 66,150 − 60,000 = ₹6,150.

  6. 6. A sum amounts to ₹13,310 in 3 years at 10% per annum, compounded annually. What was the sum?

    • A. ₹8,000
    • B. ₹9,000
    • C. ₹9,500
    • D. ₹10,000 ✓

    Solution. The amount is the principal multiplied by 1.1 three times, that is 1.331, so the principal is 13,310 divided by 1.331, or ₹10,000.

Exams that set Compound Interest

10 categories, led by Banking, Management, SSC.

    Drawn from AFCAT, ATMA, CA Foundation, CDS, CMA Foundation, DSSSB TGT, GMAT, GRE, IBPS Clerk, IBPS PO, IBPS RRB Office Assistant, IBPS RRB Officer Scale I, IBPS SO, IBSAT, IMU-CET, IPMAT Indore, IPMAT Rohtak, JAIN JET, JIPMAT, KMAT Karnataka, MAT, MICAT, MPPSC SSE, NABARD Grade A, NMAT, OPSC OCS, RBI Assistant, RBI Grade B, RPF Sub-Inspector, RRB Group D, RRB Junior Engineer, RRB NTPC, SBI Clerk, SBI PO, SEBI Grade A, SIDBI Grade A & B, SNAP, SSC CGL, SSC CHSL, SSC CPO, SSC GD Constable, SSC Selection Post, TANCET MBA, UPPSC PCS, UPSC CSE, XAT. Browse all exams.

    Compound Interest: frequently asked questions

    How many compound interest questions are there?

    110, from the 46 exams here whose syllabus sets the topic. 2% are graded easy and 43% hard, which makes compound interest one of the harder topics in this section, against a 17% average.

    Which exams ask compound interest questions?

    46 of the exams on this site, weighted towards Banking (12), Management (12), SSC (5). Every question in this pool comes from one of their own mock tests, so the list below is the honest answer to whether the topic is worth your time.

    Is compound interest hard?

    43% of these 110 questions are graded hard and 2% easy, making it one of the harder topics in this section, against a 17% average.

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