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