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Mathematics Practice Quiz On Simple And Compound Interest

20 Questions 0 Attempts 384 Seen
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.  Start Test without Login in
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Direction: Choose the correct formula for simple interest

Q.1. What is the formula for calculating simple interest?

  1. SI = (P x R x T) / 100
  2. SI = (P x R) / T
  3. SI = (P + R + T) / 100
  4. SI = (R x T) / P

Direction: Choose the correct representation of 'P' in the formula

Q.2. What does 'P' represent in the simple interest formula?

  1. Rate of interest
  2. Time period
  3. Principal amount
  4. Final amount

Direction: Calculate the simple interest for given values

Q.3. 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?

  1. ₹100
  2. ₹200
  3. ₹300
  4. ₹400

Direction: Choose the correct base for compound interest

Q.4. Compound interest is calculated on:

  1. Principal only
  2. Principal and accrued interest
  3. Rate of interest
  4. Time period only

Direction: Choose the correct formula for compound interest

Q.5. What is the formula for calculating compound interest annually?

  1. A = P(1 + R/100)^T
  2. A = P + (R x T) / 100
  3. A = P x R x T
  4. A = P x T x (R / 100)

Direction: Calculate the final amount after 3 years

Q.6. 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?

  1. ₹2,120
  2. ₹2,382.03
  3. ₹2,000
  4. ₹2,500

Direction: Choose the correct difference

Q.7. The difference between simple interest and compound interest on ₹5,000 for 2 years at a rate of 5% per annum is:

  1. ₹6.25
  2. ₹12.50
  3. ₹25
  4. ₹50

Direction: Choose the correct number of compounding periods

Q.8. If the interest is compounded half-yearly, how many times per year is the interest compounded?

  1. 1
  2. 2
  3. 3
  4. 4

Q.9. In compound interest, if the interest is compounded quarterly, the number of compounding periods in a year is:

  1. 1
  2. 2
  3. 3
  4. 4

Direction: Calculate the rate of interest

Q.10. 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?

  1. 5%
  2. 10%
  3. 15%
  4. 20%

Direction: SSC 2022 question

Q.11. A sum of ₹8,000 amounts to ₹9,261 in 2 years at compound interest. What is the rate of interest?

  1. 5%
  2. 7.5%
  3. 10%
  4. 12.5%

Direction: SSC 2019 question

Q.12. The simple interest on a sum of ₹12,000 at 6% per annum for 4 years is:

  1. ₹2,880
  2. ₹2,400
  3. ₹3,000
  4. ₹2,700

Direction: DSSSB 2020 question

Q.13. In how many years will a sum of ₹1,000 become ₹1,210 at 10% compound interest per annum?

  1. 1 year
  2. 2 years
  3. 3 years
  4. 4 years

Direction: SSC 2018 question

Q.14. The difference between compound interest and simple interest on a sum of ₹5,000 for 3 years at 8% per annum is:

  1. ₹24
  2. ₹32
  3. ₹40
  4. ₹50

Direction: DSSSB 2021 question

Q.15. What is the compound interest on ₹10,000 at 5% per annum compounded yearly for 2 years?

  1. ₹1,000
  2. ₹1,025
  3. ₹1,050
  4. ₹1,100

Direction: SSC 2021 question

Q.16. At what rate of simple interest will a sum of money double itself in 12 years?

  1. 8.33%
  2. 10%
  3. 12%
  4. 14%

Direction: SSC 2022 question

Q.17. If ₹6,000 becomes ₹7,200 in 2 years at simple interest, what is the rate of interest?

  1. 10%
  2. 12%
  3. 15%
  4. 20%

Direction: SSC 2020 question

Q.18. At what rate will ₹10,000 amount to ₹11,000 in 2 years at compound interest?

  1. 4.88%
  2. 5%
  3. 9.53%
  4. 10%

Direction: SSC 2019 question

Q.19. The simple interest on ₹5,000 at 8% per annum for 3 years is:

  1. ₹1,200
  2. ₹1,000
  3. ₹1,400
  4. ₹1,600

Direction: DSSSB 2021 question

Q.20. The compound interest on ₹4,000 for 2 years at 5% per annum compounded annually is:

  1. ₹410
  2. ₹400
  3. ₹420
  4. ₹450
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