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Compound Interest Online Exam Quiz

Important questions about Compound Interest. Compound Interest MCQ questions with answers. Compound Interest exam questions and answers for students and interviews.

1. If you deposit $5000 into an account paying 6% annual interest compounded monthly, how long until there is $8000 in the account?

Options

A : 6.9

B : 7.9

C : 8.9

D : 9.9

2. Calculate the future value of $3,000 invested at 7% for 5 years

Options

A : 4207.66

B : 5207

C : 4376

D : 5687

3. Assume that money can be invested at 8% compounded quarterly,which is larger,$2500 now or $3800 in 5 years?

Options

A : 1557.29

B : 2557.29

C : 2567

D : 2457

4. The periodic interest rate corresponding to: 9.75% compounded semiannually

Options

A : 4.875

B : 3.785

C : 4.865

D : 4.975

5. Two payments of $10,000 each must be made one year and four years from now. If money can earn 9% compounded monthly, what single payment two years from now would be equivalent to the two scheduled payments?

Options

A : 19296

B : 19396

C : 19496

D : 19596

6. A chartered bank offers a five-year Escalator Guaranteed Investment Certificate.In successive years it pays annual interest rates of 4%, 4.5%, 5%, 5.5%, and 6%, respectively, compounded at the end of each year. The bank also offers regular five-year GICs paying a fixed rate of 5% compounded annually. Calculate and compare the maturity values of $1000 invested in each type of GIC. (Note that 5% is the average of the five successive one-year rates paid on the Escalator GIC.)

Options

A : 1276.28

B : 1234

C : 1278

D : 1256

7. If the rate of inflation for the next 20 years is 2.5% per year, what annual income will be needed 20 years from now to have the same purchasing power as a $30,000 annual income today?

Options

A : 39158

B : 49158

C : 59158

D : 69158

8. Payments of $2000 and $1000 were originally scheduled to be paid one year and five years, respectively, from today. They are to be replaced by a $1500 payment due four years from today, and another payment due two years from today. The replacement stream must be economically equivalent to the scheduled stream. What is the unknown payment, if money can earn 7% compounded semiannually?

Options

A : 1548

B : 1348

C : 1648

D : 1748

9. The compound interest on a certain sum for 2 years at 10% per annum is Rs. 1155. The simple interest on the same sum for double the time at half the rate percent per annum is ?

Options

A : Rs. 1100

B : Rs. 5500

C : Rs. 1400

D : Rs. 4120

10. In what time will Rs. 3300 becomes Rs. 3399 at 6% per annum interest compounded half-yearly ?

Options

A : Quarter months

B : Half year

C : 2 years

D : 1 year

1. What is the Compound interest on Rs. 5000 in 3 years, if the rate of interest is 4% for the first year, 3% for the second year and 2% for the third year?

Options

A : Rs. 435.21

B : Rs. 453.12

C : Rs. 436.12

D : Rs. 463.12

2. A bank offers 15% compound interest per half year. A customer deposits Rs 2400 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

Options

A : Rs 2268

B : Rs 1134

C : Rs 567

D : Rs 283

3. If the amount received at 10% per annum Compound interest after 3 yrs is Rs 19965, then what will have been the principal (in Rs) amount?

Options

A : 16000

B : 15000

C : 17000

D : 18000

4. The compound interest earned in two years at 15% per annum is Rs 20640. What is the sum invested (in Rs)?

Options

A : 64000

B : 60000

C : 56000

D : 52000

5. If compound interest received on a certain amount in the 2nd year is Rs 1200, what will be the compound interest (in Rs) for the 4th year on the same amount at 10% rate of interest?

Options

A : 1452

B : 1320

C : 1552

D : 1420

6. What would be the compound interest of Rs. 25000 for 2 yrs. at 5% per annum?

Options

A : 2500

B : 2562.5

C : 2425.25

D : 5512.5

7. The compound interest on Rs. 24000 at 10% per annum for 11?2 years, interest being compounded semiannually is

Options

A : Rs.3783

B : Rs.3777

C : Rs.3780

D : Rs.3781

8. The compound interest earned in two years at 12% per annum is Rs 10176. What is the sum (in Rs) invested?

Options

A : 50000

B : 60000

C : 40000

D : 80000

9. If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200, find the compound interest on the same sum for the same period at the same rate.

Options

A : Rs.1251

B : Rs.1261

C : Rs.1271

D : Rs,1281

10. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is

Options

A : 2years

B : 3years

C : 4years

D : 5years

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