This test on Simple and Compound Interest contains 10+ multiple-choice questions designed to assess understanding of key financial concepts. The questions cover topics such as the formulas for simple and compound interest, the differences between them, and how interest is compounded over different periods. By completing this test, students will enhance their ability to calculate interest for various financial scenarios, solidifying their grasp of fundamental interest concepts.
Mathematics Practice Quiz on Simple and Compound Interest
Score: 0 / 20
Questions
Calculate the simple interest for given values
Q1. If the principal is ₹1,000, the rate of interest is 5% per annum, and the time is 2 years, what is the simple interest?
Simple interest is calculated using SI = (P x R x T) / 100
Choose the correct number of compounding periods
Q2. If the interest is compounded half-yearly, how many times per year is the interest compounded?
Half-yearly compounding means the interest is compounded twice a year
SSC 2019 question
Q3. The simple interest on a sum of ₹12,000 at 6% per annum for 4 years is:
Simple interest is calculated using the formula SI = (P x R x T) / 100
Choose the correct number of compounding periods
Q4. In compound interest, if the interest is compounded quarterly, the number of compounding periods in a year is:
Quarterly compounding means the interest is compounded 4 times a year
SSC 2019 question
Q5. The simple interest on ₹5,000 at 8% per annum for 3 years is:
The simple interest is calculated as ₹1,200
SSC 2022 question
Q6. If ₹6,000 becomes ₹7,200 in 2 years at simple interest, what is the rate of interest?
The rate of interest is 10% using SI = (P x R x T) / 100
Choose the correct representation of 'P' in the formula
Q7. What does 'P' represent in the simple interest formula?
'P' stands for the principal amount in the simple interest formula
Choose the correct formula for simple interest
Q8. What is the formula for calculating simple interest?
The correct formula for simple interest is (P x R x T) / 100
Choose the correct difference
Q9. The difference between simple interest and compound interest on ₹5,000 for 2 years at a rate of 5% per annum is:
The difference is ₹12.50 due to the compound effect over 2 years
SSC 2018 question
Q10. The difference between compound interest and simple interest on a sum of ₹5,000 for 3 years at 8% per annum is:
The difference is ₹40 due to compounding
Choose the correct base for compound interest
Q11. Compound interest is calculated on:
Compound interest is calculated on both principal and accrued interest
DSSSB 2021 question
Q12. What is the compound interest on ₹10,000 at 5% per annum compounded yearly for 2 years?
The compound interest after 2 years is ₹1,025
SSC 2022 question
Q13. A sum of ₹8,000 amounts to ₹9,261 in 2 years at compound interest. What is the rate of interest?
The sum increased at a rate of 10% per annum
SSC 2021 question
Q14. At what rate of simple interest will a sum of money double itself in 12 years?
The rate of interest should be 8.33% for the sum to double in 12 years
SSC 2020 question
Q15. At what rate will ₹10,000 amount to ₹11,000 in 2 years at compound interest?
The rate is approximately 4.88%, calculated using the compound interest formula
Calculate the final amount after 3 years
Q16. If a sum of ₹2,000 is invested at an interest rate of 6% per annum compounded annually for 3 years, what will be the amount after 3 years?
The final amount is calculated using the compound interest formula A = P(1 + R/100)^T
DSSSB 2021 question
Q17. The compound interest on ₹4,000 for 2 years at 5% per annum compounded annually is:
The compound interest is ₹410 calculated using the compound interest formula
DSSSB 2020 question
Q18. In how many years will a sum of ₹1,000 become ₹1,210 at 10% compound interest per annum?
The sum will amount to ₹1,210 in 2 years at 10% compound interest
Choose the correct formula for compound interest
Q19. What is the formula for calculating compound interest annually?
Compound interest formula is A = P(1 + R/100)^T
Calculate the rate of interest
Q20. A sum of money becomes ₹6,000 in 2 years and ₹6,600 in 3 years at compound interest. What is the rate of interest?
The rate of interest is 10% based on the growth from ₹6,000 to ₹6,600 in one year
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