Simple & Compound Interest MCQs With Answers
Banking and finance-related papers always include a few interest questions. These simple and compound interest MCQs cover the SI formula, finding principal, rate or time, money that doubles, triples or quadruples, compound interest compounded yearly and half-yearly, the difference between SI and CI over two years, and population growth at a fixed rate. They suit bank job tests, FPSC, PPSC, NTS and commerce students.
Take a scored quiz instead →A sum of 1000 at 5% SI for 1 year gives interest:
(1000*5*1)/100 = 50.
A sum of 2000 at 10% SI for 3 years gives interest:
(2000*10*3)/100 = 600.
A sum of money doubles itself in 10 years at simple interest. What is the rate of interest?
P = (P * r * 10) / 100 => 100 = 10r => r=10%.
A sum earns interest of 100 in 2 years at 5% SI. Sum is:
100 = (P*5*2)/100 => 10000 = 10P => P=1000.
A person invests Rs. 1000 at 5% SI for 4 years. What is the interest?
(1000*5*4)/100 = 200.
A sum of 5000 at 5% SI for 2 years gives interest of:
(5000*5*2)/100 = 500.
Find the compound interest on Rs. 2000 at 10% per annum for 2 years.
CI = 2000(1+0.1)^2 - 2000 = 2000(1.21) - 2000 = 2420 - 2000 = 420.
A sum of money doubles in 5 years at simple interest. What is the rate?
P = (P*r*5)/100 => 100 = 5r => r=20.
A sum of Rs. 1000 is invested at 10% per annum compound interest for 2 years. What is the total amount?
Amount = P(1+r/100)^n = 1000(1+0.1)^2 = 1000(1.21) = 1210.
The simple interest on Rs. 4000 for 3 years at 5% per annum is:
SI = (4000*5*3)/100 = 600.
A sum of Rs. 2000 amounts to Rs. 2420 in 2 years at compound interest. Find the rate.
2000(1+r/100)^2 = 2420 => (1+r/100)^2 = 1.21 => 1+r/100 = 1.1 => r=10.
SI on 500 at 10% for 3 years?
500*0.1*3=150.
CI on 1000 at 10% for 2 years?
1000*(1.1^2-1)=210.
A sum of money becomes 3 times in 20 years at simple interest. Find the rate of interest.
SI = 2P. 2P = P * R * 20 / 100 => 2 = R * 20 / 100 => R = 10%.
A sum of Rs. 1000 at 5% CI compounded annually for 2 years becomes:
1000 * (1.05)^2 = 1000 * 1.1025 = 1102.5.
SI on 500 at 5% for 4 years?
500*0.05*4 = 100.
Simple Interest on 1000 at 10% for 2 years?
SI = P*R*T/100 = 1000*10*2/100 = 200.
In how many years will 1000 become 2000 at 5% SI?
SI = 1000. 1000 = (1000 * 5 * T)/100 => T = 20.
Simple interest on a sum for 3 years at 5% per annum is Rs. 1,200. What is the compound interest on the same sum for 2 years at the same rate?
SI = P*R*T/100 => 1200 = P*5*3/100 => P = 8000. CI = 8000 * ((1.05)^2 - 1) = 8000 * 0.1025 = 820.
In how many years will money double at 10% SI?
- Money doubles when the interest earned equals the original principal, so SI = P.
- Substitute into SI = (P × R × T)/100: P = (P × 10 × T)/100, which leaves T = 10 years.
- The principal cancels out, so the answer does not depend on how much money is invested.
- The simple interest shortcut is T = 100 ÷ R, and 100 ÷ 10 gives 10 years directly.
- To triple the money the interest must equal twice the principal, which takes 200 ÷ R = 20 years.
- Simple interest doubling MCQs are a regular feature of FPSC and NTS papers, and T = 100 ÷ R answers them instantly.
What is the compound interest on Rs. 5,000 for 2 years at 12% per annum, compounded annually?
Amount = 5000 * (1 + 12/100)^2 = 5000 * (1.12)^2 = 5000 * 1.2544 = Rs. 6,272. Compound Interest = 6272 - 5000 = Rs. 1,272.
A sum of money quadruples (becomes 4 times) in 12 years at simple interest. Find the rate of interest per annum.
Simple Interest SI = 4P - P = 3P. Rate R = (SI * 100) / (P * T) = (3P * 100) / (P * 12) = 300 / 12 = 25%.
A sum of money invested at compound interest amounts to Rs. 2,420 in 2 years and Rs. 2,662 in 3 years. Find the rate of interest per annum.
Interest earned in 3rd year = 2662 - 2420 = Rs. 242. Rate R = (242 / 2420) * 100 = 10%.
In how many years will a sum of money triple itself at 12.5% per annum simple interest?
Interest SI = 3P - P = 2P. Time T = (SI * 100) / (P * R) = (2P * 100) / (P * 12.5) = 200 / 12.5 = 16 years.
Find the compound interest on Rs. 10,000 for 1.5 years at 10% per annum, compounded half-yearly.
Half-yearly rate r = 10/2 = 5%. Time periods n = 1.5 * 2 = 3. Amount = 10000 * (1.05)^3 = 10000 * 1.157625 = Rs. 11,576.25. CI = 11576.25 - 10000 = Rs. 1,576.25.
A sum of money quadruples (becomes 4 times) in 15 years at simple interest. What is the rate of interest per annum?
SI = 4P - P = 3P. Rate R = (SI * 100) / (P * T) = (3P * 100) / (P * 15) = 300 / 15 = 20%.
A sum of money doubles itself at simple interest in 8 years. What is the rate of interest per annum?
Let Principal P = 100, Interest SI = 100. Time T = 8 years. Rate R = (SI * 100) / (P * T) = (100 * 100) / (100 * 8) = 12.5%.
A sum of Rs. 8,000 amounts to Rs. 9,261 in 3 years at compound interest. What is the rate of interest per annum?
Amount / Principal = (1 + R/100)^3 => 9261 / 8000 = (21/20)^3 = (1 + R/100)^3 => 1 + R/100 = 21/20 = 1.05 => R = 5%.
The difference between simple interest and compound interest on a sum for 2 years at 10% per annum is Rs. 50. Find the sum.
Difference D = P * (R/100)^2 => 50 = P * (10/100)^2 => 50 = P * (1/100) => P = 50 * 100 = Rs. 5,000.
Find the compound interest on Rs. 12,000 for 2 years at 5% per annum compounded annually.
Amount = 12000 * (1 + 5/100)^2 = 12000 * (1.05)^2 = 12000 * 1.1025 = Rs. 13,230. CI = 13230 - 12000 = Rs. 1,230.
Find the simple interest on Rs. 7,500 at 6% per annum for 3 years.
SI = (P * R * T) / 100 = (7500 * 6 * 3) / 100 = 75 * 18 = Rs. 1,350.
Find the compound interest on Rs. 5000 for 1.5 years at 10% per annum compounded half-yearly.
R = 10/2 = 5% per half-year, n = 1.5 * 2 = 3 periods. Amount = 5000 * (1.05)^3 = 5000 * 1.157625 = Rs. 5788.125. CI = 5788.125 - 5000 = Rs. 788.125.
Find the difference between compound interest and simple interest on Rs. 4000 at 10% per annum for 2 years.
- Difference for 2 years = P × (R/100)² = 4000 × (10/100)² = 4000 × 1/100 = Rs. 40.
- Check it the long way: simple interest is Rs. 800 and compound interest is Rs. 840, so the gap is Rs. 40.
- The gap appears because in the second year interest is also charged on the first year's Rs. 400 interest.
- This shortcut works only for a 2-year period. For 3 years the difference is P × R² × (300 + R) / 100³.
- Option A Rs. 20 would need a rate of about 7% instead of 10%, so it can be ruled out at a glance.
- Compound interest MCQs in FPSC and PPSC papers often use a 2-year period, so this one-line formula saves time.
A sum of money invested at compound interest doubles in 5 years. In how many years will it become 8 times itself?
Amount multiplies by 2 every 5 years. 8 times = 2^3 times. Time required = 3 * 5 = 15 years.
Find the compound interest on Rs. 8000 at 5% per annum for 2 years.
Amount = 8000 * (1 + 0.05)^2 = 8000 * (1.05)^2 = 8000 * 1.1025 = Rs. 8820. CI = 8820 - 8000 = Rs. 820.
The population of a town increases by 10% annually. If the current population is 50,000, what will it be after 2 years?
Population after 2 years = 50000 * (1 + 0.10)^2 = 50000 * 1.21 = 60,500.
Find the compound interest on Rs. 10,000 for 2 years at 10% per annum compounded annually.
Amount = 10000 * (1 + 10/100)^2 = 10000 * 1.21 = Rs. 12,100. CI = 12100 - 10000 = Rs. 2100.
Find the simple interest on Rs. 2500 at 8% per annum for 4 years.
Simple Interest = (P * R * T)/100 = (2500 * 8 * 4)/100 = 800.
What is the simple interest on Rs. 4000 at 6% per annum for 3 years?
Simple Interest = (P * R * T) / 100 = (4000 * 6 * 3) / 100 = 720.
Find the simple interest rate per annum if Rs. 500 yields Rs. 100 interest in 4 years.
SI = (P * R * T) / 100 => 100 = (500 * R * 4) / 100 => 100 = 20 * R => R = 5%.
A sum of money doubles itself in 5 years at simple interest. In how many years will it become 4 times itself?
If principal doubles, Interest = P in 5 years. For amount to become 4P, Interest required = 3P. Time taken = 3 * 5 = 15 years.
What principal will amount to Rs. 1320 in 2 years at 10% per annum simple interest?
Amount = P(1 + RT/100) => 1320 = P(1 + (10*2)/100) => 1320 = P(1.20) => P = 1320 / 1.20 = Rs. 1100.
Find the compound interest on Rs. 5000 at 10% per annum for 1 year compounded half-yearly.
Half-yearly rate R = 5%, periods n = 2. Amount = 5000 * (1 + 5/100)^2 = 5000 * 1.1025 = Rs. 5512.50. CI = 5512.50 - 5000 = Rs. 512.50.
What is the simple interest on Rs. 5000 at an annual interest rate of 8% for 3 years?
Simple Interest formula is SI = (P * R * T) / 100. Substituting the values: SI = (5000 * 8 * 3) / 100 = 1200.
A sum becomes Rs. 2600 in 2 years and Rs. 3200 in 5 years at simple interest. What is the annual interest?
Interest for 3 years = 3200 - 2600 = Rs. 600. Annual interest = 600 / 3 = Rs. 200.
The simple interest on Rs. 2000 for 3 years at 5% per annum is:
SI = (P * R * T) / 100 = (2000 * 5 * 3) / 100 = Rs. 300.