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CA Foundation
Compound Interest
MCQ’s
Q. Question Marks
No.
1. The difference between CI and SI on a certain sum of money for 2 years at 4% per 1
annum is ₹1. The sum is
a) 625
b) 630
c) 640
d) 635
(June 2013)
2. If the sum of money when compounded annually become 1140 in 2 years and 1710 in 1
3 years at rate of interest
a) 30%
b) 40%
c) 50%
d) 60%
(June 2013)
3. The difference between and C.I & S.I at 7% p.a. for 2 years is ₹29.4. then principal is 1
a) ₹5,000
b) ₹5,500
c) ₹6,000
d) ₹6,500
(Dec. 2013)
4. The Partners A & B together lent ₹3903 at 4% p.a. interest compounded annually. After 1
a span of 7 years, A gets the same amount as B gets after 9 years. The share of A in the
sum of ₹3903/- would have been
a) ₹1875
b) ₹2280
c) ₹2028
d) ₹2820
(June 2014)
5. A certain sum of money double itself in 4 years at C.I. In how many years it will become 1
32 times to itself
a) 16 years
b) 24 years
c) 20 years
d) 12 years
(Dec. 2014)
6. On a certain sum rate of interest @ 10% p.a., S.I = ₹90 Term = 2 year, Find compound 1
interest for the same:
a) 5445
b) 94.5

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c) 450
d) 18
(Dec. 2015)
7. If an amount is kept at Simple Interest, it earns ₹600 in first 2 years but when kept at 1
Compound Interest it earns at interest of ₹660 for the same period; then the rate of
interest and principle amount respectively are:
a) 20%; ₹1200
b) 10%; ₹1200
c) 20%; ₹1500
d) 10%; ₹1500
(June 2016)
8. A sum of money amounts ₹7,803 for one year at the rate of 4% compounded semi– 1
annually then the sum invested is:
a) 7,000
b) 7,500
c) 7,750
d) 8,000
(Dec. 2016)
9. The difference between the simple interest and compound interest on a certain sum of 1
money invested for 2 years at 5% p.a. is ₹30. Then the sum:
a) 10,000
b) 12,000
c) 13,000
d) None of these
(Dec. 2016)
10. The difference between simple and compound interest on a sum of ₹10,000 for 4 years 1
at the rate of interest 10% per annum is ___________:
a) 650
b) 640
c) 641
d) 600
(June 2017)
11. In Compound interest, if the amount is 9 times to its principle in two years then the rate 1
of interest is?
a) 300%
b) 200%
c) 150%
d) 100%
(June 2018)
12. If the difference between compound interest and simple interest for 3 years is 912 at 1
the rate of 4% p.a. then principle is:
a) ₹1,87,500
b) ₹1,87,500
c) ₹1,87,500
d) ₹1,85,700 (June 2018)

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13. On what sum the C.I for 2 years at the rate of interest 5% compounded annually 1
becomes ₹2850?
a) ₹16,004
b) ₹27,805
c) ₹30,515
d) ₹29,500
(June 2019)
14. The compound interest for a certain sum at 5% p.a., for the 1 year is ₹25/- then the
st 1
simple interest at 5% for the same sum for 2 years will be
a) ₹45
b) ₹50
c) ₹53
d) ₹58
(June 2019)
15. If the compound interest on a sum for two year at the rate 5% p.a. is ₹512.50, then the 1
principle is ___________:
a) 4,000
b) 3,000
c) 5,000
d) None of these
(Dec. 2017)
16. Find effective rate of interest corresponding to the nominal rate of interest 7% 1
compounded monthly is __________:
a) 7.26%
b) 7.22%
c) 7.02%
d) 7.20
(Dec. 2017)
17. If ₹10,000 is invested at 8% per year compound quarterly, then the value of the 1
investment after 2 years is [given (1+0.2)8 –1.171659]
a) ₹10,716.59
b) ₹11,716.59
c) ₹117.1659
d) None of the above
(Dec. 2018)
18. A bank pays 10% rate of interest, interest being calculated half yearly. A sum of ₹400 1
is deposited in the bank. The amount at the end of 1 years will be
a) ₹439
b) ₹440
c) ₹442
d) ₹441
(Dec. 2018)
19. A men deposited ₹8,000 in a bank for 3 years at 5% per annum compound interest, 1
after 3 years he will get
a) ₹9,000

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b) ₹8,800
c) ₹9,200
d) ₹9,261
(Dec. 2018)
20. If in two years time a principal of ₹100 amounts to ₹121 when the interest at the rate 1
of r% is compounded annually, then the value of r will be
a) 14
b) 10.5
c) 15
d) 10
(Dec. 2018)
21 The effective rate of interest for one year deposit corresponding to a nominal 7% rate 1
of interest per annum convertible quarterly is
a) 7%
b) 7.4%
c) 7.5%
d) 7.18%
(Dec. 2018)
22. How much will ₹25,000 amount to in 2 years at compound interest if the rates for the 1
successive years are 4% and 5% per year
a) ₹27,000
b) ₹27,300
c) ₹27,500
d) ₹27,900
(Dec. 2018)
23. ₹8,000/- at 10% per annum interest compounded half yearly will become at the end of 1
one year
a) ₹8,800/-
b) ₹8,900/-
c) ₹8820
d) ₹9,600
(Dec. 2018)
24. If compound interest on a sum for 2 years at 4% per annum is ₹102, then the simple 1
interest on the same period at the same rate will be
a) ₹90
b) ₹100
c) ₹101
d) ₹93
(Dec. 2018)
25. If the difference between the compound interest compounded annually and simple 1
interest on a certain amount at 10% per annum for two years is ₹372, then the principal
amount is
a) ₹37,000
b) ₹37,200
c) ₹37,500

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d) None of the above

(Dec. 2018)
26. A sum was invested for 3 years as per C.I and the rate of interest for first year is 9%, 2nd 1
year is 6% and 3rd year is 3% p.a. respectively. Find the sum if the amount in three years
is ₹550?
a) ₹250
b) ₹300
c) ₹462.16
d) ₹350
(June 2019)
27. If pi2 = ₹96 and R = 8% compounded annually then P = _______. 1
a) ₹14,000
b) ₹15,000
c) ₹16,000
d) ₹17,000
(June 2019)
28. The Effective Rate of interest does not depend upon 1
a) Amount of Principal
b) Amount of interest
c) Number of Conversion periods
d) None of these
(June 2019)
29. The present value of a scooter is ₹7290. The rate of depreciation is 10%. What was its 1
value 3 years ago?
a) 10,000
b) 10010
c) 9990
d) 12000
(Nov. 2019)
30. The difference between compound interest, compounded semi annually and simple 1
interest on ₹400 at 10% p.a. for one year.
a) ₹1
b) ₹28
c) ₹35
d) ₹40
(Nov. 2019)
31. In what time will a sum ₹800 amounts to ₹882 at 5% p.a. compounded annually 1
a) 1 years
b) 2 years
c) 3 years
d) 4 years
(Nov. 2019)
32. If the compound interest on a certain sum for 2 years at 3% p.a. is ₹1015. What would 1
be the simple interest on the sum at the same rate same time is
a) 1005

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b) 1010
c) 1000
d) 1003
(Nov. 2019)
33. The useful life of a machine whose cost is ₹10,000 is 10 years. If it depreciates at 10% 1
p.a. then the scrap value of the machine is.
a) 3486.70
b) 3158.30
c) 3500
d) 7033
(Nov. 2019)
34. Find the effective rate of interest if an amount of ₹30,000 deposited in a bank. For 1 1
year at the rate of 10% p.a. compounded semi annually.
a) 10.05%
b) 10.10%
c) 10.20%
d) 10.25%
(Nov. 2019)
35. The present population of a town is 25,000. If it grows at the rate of 4%, 5%, 8% during 1
1st year, 2nd year, 3rd year respectively. Then find the population after 3 years.
a) 29,484
b) 29,844
c) 29,448
d) 28,944
(Nov. 2019)
36. An amount 35000 with the rate of interest is 7% per annum, it is compounded on a 1
monthly basis, then tell the effective rate of interest.
a) 7.22%
b) 7.64%
c) 7.0%
d) 7.5%
(Nov. 2019)
37. On what sum will the compound interest at 5% p.a for 2 years compounded annually 1
be ₹3,280
a) ₹16,000
b) ₹32,000
c) ₹48,000
d) ₹64,000
(Dec. 2020)
38. An amount P becomes ₹5,100.5 and ₹5,203 after second and fourth years respectively, 1
at r% of interest per annum compounded annually. Thus, values of P and r are
a) ₹5,000 and 1
b) ₹4,000 and 1
c) ₹6,000 and 2
d) ₹5,500 and 3 (Dec. 2020)

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39. A certain sum invested at 4% per annum compounded semi–annually amounts to 1

₹1,20,000 at the end of one year. Find the sum
a) 1,10,120
b) 1,15,340
c) 1,12,812
d) 1,13,113
(Dec. 2020)
40. The ratio of principal and the compound interest value for three years (compounded 1
annually) is 216: 127. The rate of interest is
a) 0.1567
b) 0.1777
c) 0.1666
d) 0.1588
(Dec. 2020)
41. An amount is lent at a nominal rate of 4.5% per annum compounded quarterly. What 1
would be the gain in rupees over when compounded annually.
a) 0.56
b) 0.45
c) 0.76
d) 0.85
(Dec. 2020)
42. Find the compound interest if an amount of ₹50,000 is deposited in a bank for one year 1
at the rate of 8% per annum compounded semi annually
a) ₹3080
b) ₹4080
c) ₹5456
d) ₹7856
(Dec. 2020)
43. Find the amount of compound interest, if an amount of ₹50,000 is deposited in a bank 1
for one year at the rate of 8% per annum compounded semi annually.
a) ₹3080
b) ₹4080
c) ₹5,456
d) ₹7,856
(Jan. 2021)
44. The population of a town increase by 2% of the population at the beginning of that year. 1
The number of years by which the total increase in population would be 40% is.
a) 7 years
b) 10 years
c) 17 years (approx)
d) 19 years (approx)
(Jan. 2021)
45. The simple interest on a sum at 4% p.a. for two years is ₹80. Find the compound 1
interest on the same for the same period.
a) ₹81.6

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b) ₹80.8
c) ₹83.2
d) ₹82.3
(Jan. 2021)
46. Which is a better investment, 9% p.a. compounded quarterly or 9.1% p.a. simple 1
interest?
a) 9% compounded
b) 9.1% S.I
c) Both are same
d) Can not be said
(Jan. 2021)
47. The effective rate of interest corresponding to a nominal rate of 7% p.a. compounded 1
quarterly is.
a) 7.5%
b) 7.6%
c) 7.7%
d) 7.18%
(Jan. 2021)
48. A sum of money is lent at compounded interest rate 20%, p.a. two years. It would fetch 1
₹482 more if the interest is compounded half–yearly. Then the sum is.
a) ₹19,800
b) ₹19,900
c) ₹20,000
d) ₹20,100
(Jan. 2020)
49. When ‘i' denote the actual rate of interest in decimal, and n denote the number of 1
conversion periods, the formula for computing the effective rate of interest E is given
by.
a) (1+i)n
b) (1+i)n–1
c) 1–(1+i)n
d) (1+i)–n
(Jan. 2021)
50. A sum of ₹7500 amounts to ₹9075 at 10% p.a., interest being compounded yearly in a 1
certain time. The simple interest (in ₹) on the same sum for the same time rate is
a) 1,000
b) 1,250
c) 1800
d) 1,500
(July. 2021)
51. What is the compound interest (in ₹) on a sum of ₹12,600 for 1½ years at 20% per 1
annum if the interest is compounded half yearly? (Nearest to a Rupee)
a) 4271
b) 4171
c) 4711

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d) 4117
(July. 2020)
52. A sum of ₹ X amounts to ₹27,900 in 3 years and to ₹41,850 in 6 years at a certain rate 1
percent per annum, when the interest is compounded yearly. The value of x is
a) 16,080
b) 18,600
c) 18060
d) 16800
(July. 2021)
53. The effective rate of return for 24% per annum convertible monthly is given as 1
a) 24%
b) 26.82%
c) 18%
d) 24.24%
(July. 2021)
54. What is the difference (in ₹) between the simple interest and the compound interest on 1
2
a sum of ₹8,000 for 2 years at the rate of 10% p.a., when the interest is compounded
5
yearly?
a) 135.75
b) 129.50
c) 151.75
d) 147.20
(July. 2021)

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