Home » Compound Interest – Questions and Answers – Quiz 1

# Compound Interest – Questions and Answers – Quiz 1

1. 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:
Rs. 120
Rs. 121
Rs. 122
Rs. 123

2. The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
625
630
640
650

3. There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
Rs. 2160
Rs. 3120
Rs. 3972
Rs. 6240

4. What is the difference between the compound interests on Rs. 5000 for 1(1/2)years at 4% per annum compounded yearly and half-yearly?
Rs. 2.04
Rs. 3.06
Rs. 4.80
Rs. 8.30

5. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
2
2(1/ 2)
3
4

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