# Compound Interest MCQs with Answers

Compound Interest MCQs are very important test and often asked by various testing services and competitive exams around the world. Here you will find all the Important Compound Interest MCQs for Preparation.

The student can clear their concepts for Compound Interest online quiz by attempting it. Doing MCQs based Compound Interest will help you to check your understanding and identify areas of improvement.

What is the formula to calculate compound interest?
A) P × (1 + r/n)^(nt)
B) P × r × t
C) P + r + n + t
D) P ÷ r

A) P × (1 + r/n)^(nt)

Compound interest is calculated on which of the following?
A) Principal amount only
B) Principal and interest
C) Principal, interest, and time
D) Principal and time

B) Principal and interest

At what frequency is interest compounded annually?
A) Once
B) Twice
C) Thrice
D) Continuously

A) Once

If the principal amount is \$5,000, the interest rate is 5%, and the time period is 2 years, what is the compound interest?
A) \$250
B) \$500
C) \$625
D) \$1,250

C) \$625

The difference between the compound interest and simple interest for a certain sum of money at 10% per annum for 2 years is \$24. What is the principal amount?
A) \$120
B) \$240
C) \$600
D) \$1,200

B) \$240

Which of the following factors affects the compound interest?
A) Principal amount
B) Interest rate
C) Time period
D) All of the above

D) All of the above

What will be the compound interest on \$6,000 for 3 years at a rate of 8% per annum compounded annually?
A) \$1,152
B) \$1,728
C) \$2,880
D) \$3,840

B) \$1,728

The compound interest on \$10,000 for 2 years at an annual rate of 6% compounded semi-annually will be?
A) \$360
B) \$365.10
C) \$400
D) \$412.36

D) \$412.36

The compound interest on \$3,500 for 4 years at an annual rate of 4% compounded quarterly will be?
A) \$607.13
B) \$611.14
C) \$624.68
D) \$643.72

C) \$624.68

If the compound interest on a certain sum for 2 years at a rate of 12% per annum compounded annually is \$8,640, what is the principal amount?
A) \$30,000
B) \$36,000
C) \$40,000
D) \$45,000

C) \$40,000

The compound interest on \$5,000 for 1 year at a rate of 6% per annum compounded half-yearly will be?
A) \$295.32
B) \$306.30
C) \$314.60
D) \$330.30

C) \$314.60

The compound interest on \$2,500 for 3 years at an annual rate of 3% compounded annually will be?
A) \$232.84
B) \$243.32
C) \$247.50
D) \$255.15

A) \$232.84

If the compound interest on a certain sum for 2 years at a rate of 8% per annum compounded annually is \$1,152, what is the principal amount?
A) \$4,000
B) \$4,500
C) \$5,000
D) \$5,500

C) \$5,000

The compound interest on \$8,000 for 3 years at a rate of 5% per annum compounded half-yearly will be?
A) \$1,231.48
B) \$1,239.40
C) \$1,254.40
D) \$1,287.75

A) \$1,231.48

If the compound interest on a certain sum for 3 years at a rate of 10% per annum compounded annually is \$2,310, what is the principal amount?
A) \$6,000
B) \$6,500
C) \$7,000
D) \$7,500

A) \$6,000

The compound interest on \$12,000 for 2 years at a rate of 7% per annum compounded semi-annually will be?
A) \$1,652.40
B) \$1,682.80
C) \$1,738.20
D) \$1,795.80

B) \$1,682.80

The compound interest on \$1,500 for 4 years at an annual rate of 9% compounded quarterly will be?
A) \$767.43
B) \$776.22
C) \$789.34
D) \$806.43

C) \$789.34

If the compound interest on a certain sum for 3 years at a rate of 6% per annum compounded annually is \$1,230, what is the principal amount?
A) \$3,500
B) \$3,750
C) \$4,000
D) \$4,250

C) \$4,000

The compound interest on \$6,000 for 1 year at a rate of 4% per annum compounded half-yearly will be?
A) \$496.40
B) \$500.24
C) \$515.60
D) \$524.80

C) \$515.60

The compound interest on \$10,000 for 3 years at a rate of 8% per annum compounded quarterly will be?
A) \$2,476.80
B) \$2,503.36
C) \$2,571.20
D) \$2,642.08

A) \$2,476.80

If the compound interest on a certain sum for 2 years at a rate of 5% per annum compounded annually is \$560, what is the principal amount?
A) \$2,000
B) \$2,200
C) \$2,400
D) \$2,600

B) \$2,200

The compound interest on \$4,500 for 4 years at a rate of 6% per annum compounded semi-annually will be?
A) \$1,282.50
B) \$1,311.20
C) \$1,348.50
D) \$1,386.60

C) \$1,348.50

The compound interest on \$3,000 for 3 years at an annual rate of 7% compounded annually will be?
A) \$671.97
B) \$690.35
C) \$714.00
D) \$739.23

D) \$739.23

If the compound interest on a certain sum for 3 years at a rate of 8% per annum compounded annually is \$1,440, what is the principal amount?
A) \$4,500
B) \$4,750
C) \$5,000
D) \$5,250

C) \$5,000

The compound interest on \$7,500 for 2 years at a rate of 9% per annum compounded semi-annually will be?
A) \$1,719.42
B) \$1,751.35
C) \$1,798.95
D) \$1,852.85

B) \$1,751.35

The compound interest on \$2,000 for 4 years at a rate of 4% per annum compounded quarterly will be?
A) \$376.94
B) \$385.12
C) \$393.92
D) \$402.36

A) \$376.94

If the compound interest on a certain sum for 4 years at a rate of 7% per annum compounded annually is \$1,120, what is the principal amount?
A) \$2,500
B) \$2,750
C) \$3,000
D) \$3,250

C) \$3,000

The compound interest on \$6,000 for 3 years at a rate of 5% per annum compounded half-yearly will be?
A) \$929.50
B) \$942.00
C) \$963.50
D) \$977.25

A) \$929.50

The compound interest on \$5,000 for 2 years at an annual rate of 6% compounded annually will be?
A) \$615.60
B) \$636.00
C) \$648.00
D) \$672.00

C) \$648.00

If the compound interest on a certain sum for 2 years at a rate of 9% per annum compounded annually is \$3,780, what is the principal amount?
A) \$10,000
B) \$10,500
C) \$11,000
D) \$11,500

B) \$10,500

The compound interest on \$2,500 for 4 years at a rate of 8% per annum compounded semi-annually will be?
A) \$776.50
B) \$805.75
C) \$833.60
D) \$862.90

C) \$833.60

The compound interest on \$3,000 for 3 years at an annual rate of 6% compounded annually will be?
A) \$527.04
B) \$543.60
C) \$561.36
D) \$578.64

C) \$561.36

If the compound interest on a certain sum for 3 years at a rate of 5% per annum compounded annually is \$900, what is the principal amount?
A) \$2,000
B) \$2,250
C) \$2,500
D) \$2,750

C) \$2,500

The compound interest on \$8,000 for 2 years at a rate of 7% per annum compounded semi-annually will be?
A) \$1,181.60
B) \$1,213.20
C) \$1,251.20
D) \$1,293.60

A) \$1,181.60

The compound interest on \$1,500 for 4 years at a rate of 3% per annum compounded quarterly will be?
A) \$197.91
B) \$203.25
C) \$209.16
D) \$215.67

B) \$203.25

If the compound interest on a certain sum for 4 years at a rate of 6% per annum compounded annually is \$2,160, what is the principal amount?
A) \$4,000
B) \$4,500
C) \$5,000
D) \$5,500

C) \$5,000

The compound interest on \$6,000 for 3 years at a rate of 4% per annum compounded half-yearly will be?
A) \$697.50
B) \$712.50
C) \$728.00
D) \$744.00

C) \$728.00

The compound interest on \$5,000 for 2 years at an annual rate of 5% compounded annually will be?
A) \$512.50
B) \$525.00
C) \$537.50
D) \$550.00

C) \$537.50

If the compound interest on a certain sum for 2 years at a rate of 7% per annum compounded annually is \$1,540, what is the principal amount?
A) \$5,000
B) \$5,250
C) \$5,500
D) \$5,750

C) \$5,500

The compound interest on \$2,500 for 4 years at a rate of 5% per annum compounded semi-annually will be?
A) \$394.08
B) \$403.85
C) \$413.99
D) \$424.54

C) \$413.99

The compound interest on \$3,000 for 3 years at an annual rate of 8% compounded annually will be?
A) \$750.48
B) \$770.40
C) \$791.04
D) \$812.45

C) \$791.04

If the compound interest on a certain sum for 3 years at a rate of 6% per annum compounded annually is \$1,080, what is the principal amount?
A) \$3,000
B) \$3,250
C) \$3,500
D) \$3,750

C) \$3,500

The compound interest on \$8,000 for 2 years at a rate of 9% per annum compounded semi-annually will be?
A) \$1,674.60
B) \$1,716.60
C) \$1,764.40
D) \$1,818.20

C) \$1,764.40

The compound interest on \$1,500 for 4 years at a rate of 4% per annum compounded quarterly will be?
A) \$250.60
B) \$256.90
C) \$263.85
D) \$271.37

C) \$263.85

If the compound interest on a certain sum for 4 years at a rate of 8% per annum compounded annually is \$2,560, what is the principal amount?
A) \$6,000
B) \$6,500
C) \$7,000
D) \$7,500

C) \$7,000

The compound interest on \$6,000 for 3 years at a rate of 6% per annum compounded half-yearly will be?
A) \$1,055.85
B) \$1,071.30
C) \$1,086.25
D) \$1,101.60

B) \$1,071.30

The compound interest on \$5,000 for 2 years at an annual rate of 4% compounded annually will be?
A) \$402.00
B) \$408.00
C) \$414.00
D) \$420.00

C) \$414.00

If the compound interest on a certain sum for 2 years at a rate of 6% per annum compounded annually is \$1,320, what is the principal amount?
A) \$4,000
B) \$4,250
C) \$4,500
D) \$4,750

C) \$4,500

The compound interest on \$2,500 for 4 years at a rate of 7% per annum compounded semi-annually will be?
A) \$554.25
B) \$571.75
C) \$590.85
D) \$611.55

D) \$611.55

The compound interest on \$3,000 for 3 years at an annual rate of 5% compounded annually will be?
A) \$464.15
B) \$477.75
C) \$492.00
D) \$506.80

C) \$492.00

If the compound interest on a certain sum for 3 years at a rate of 7% per annum compounded annually is \$1,350, what is the principal amount?
A) \$3,000
B) \$3,250
C) \$3,500
D) \$3,750

C) \$3,500

The compound interest on \$8,000 for 2 years at a rate of 6% per annum compounded semi-annually will be?
A) \$943.20
B) \$967.20
C) \$991.20
D) \$1,016.40

C) \$991.20

The compound interest on \$1,500 for 4 years at a rate of 3% per annum compounded quarterly will be?
A) \$180.90
B) \$184.32
C) \$188.10
D) \$192.24

C) \$188.10

If the compound interest on a certain sum for 4 years at a rate of 5% per annum compounded annually is \$1,000, what is the principal amount?
A) \$2,000
B) \$2,250
C) \$2,500
D) \$2,750

C) \$2,500

The compound interest on \$6,000 for 3 years at a rate of 4% per annum compounded half-yearly will be?
A) \$413.50
B) \$422.50
C) \$431.75
D) \$441.25

D) \$441.25

The compound interest on \$5,000 for 2 years at an annual rate of 3% compounded annually will be?
A) \$306.00
B) \$310.50
C) \$315.25
D) \$320.25

C) \$315.25

If the compound interest on a certain sum for 2 years at a rate of 5% per annum compounded annually is \$950, what is the principal amount?
A) \$3,000
B) \$3,250
C) \$3,500
D) \$3,750

D) \$3,750

The compound interest on \$2,500 for 4 years at a rate of 4% per annum compounded semi-annually will be?
A) \$333.60
B) \$343.20
C) \$353.28
D) \$363.84

C) \$353.28

The compound interest on \$3,000 for 3 years at an annual rate of 6% compounded annually will be?
A) \$559.56
B) \$576.00
C) \$593.28
D) \$611.35

D) \$611.35

If the compound interest on a certain sum for 3 years at a rate of 8% per annum compounded annually is \$2,400, what is the principal amount?
A) \$5,000
B) \$5,250
C) \$5,500
D) \$5,750

C) \$5,500

The compound interest on \$8,000 for 2 years at a rate of 7% per annum compounded semi-annually will be?
A) \$1,434.80
B) \$1,472.10
C) \$1,509.80
D) \$1,547.90

C) \$1,509.80

The compound interest on \$1,500 for 4 years at a rate of 5% per annum compounded quarterly will be?
A) \$200.85
B) \$206.50
C) \$212.50
D) \$218.90

B) \$206.50

If the compound interest on a certain sum for 4 years at a rate of 6% per annum compounded annually is \$2,240, what is the principal amount?
A) \$4,000
B) \$4,250
C) \$4,500
D) \$4,750

C) \$4,500

The compound interest on \$6,000 for 3 years at a rate of 5% per annum compounded half-yearly will be?
A) \$835.00
B) \$851.25
C) \$867.75
D) \$884.50

C) \$867.75

The compound interest on \$5,000 for 2 years at an annual rate of 2% compounded annually will be?
A) \$200.00
B) \$204.00
C) \$208.08
D) \$212.32

D) \$212.32

If the compound interest on a certain sum for 2 years at a rate of 4% per annum compounded annually is \$800, what is the principal amount?
A) \$2,000
B) \$2,250
C) \$2,500
D) \$2,750

C) \$2,500

The compound interest on \$2,500 for 4 years at a rate of 3% per annum compounded semi-annually will be?
A) \$273.34
B) \$281.17
C) \$289.25
D) \$297.58

C) \$289.25

The compound interest on \$3,000 for 3 years at an annual rate of 4% compounded annually will be?
A) \$377.28
B) \$388.80
C) \$400.96
D) \$413.70

C) \$400.96

If the compound interest on a certain sum for 3 years at a rate of 6% per annum compounded annually is \$1,350, what is the principal amount?
A) \$2,500
B) \$2,750
C) \$3,000
D) \$3,250

C) \$3,000

The compound interest on \$8,000 for 2 years at a rate of 5% per annum compounded semi-annually will be?
A) \$1,512.50
B) \$1,548.75
C) \$1,585.50
D) \$1,622.75

C) \$1,585.50

The compound interest on \$1,500 for 4 years at a rate of 2% per annum compounded quarterly will be?
A) \$180.00
B) \$184.50
C) \$189.00
D) \$193.50

D) \$193.50

If the compound interest on a certain sum for 4 years at a rate of 4% per annum compounded annually is \$1,600, what is the principal amount?
A) \$3,500
B) \$3,750
C) \$4,000
D) \$4,250

C) \$4,000

The compound interest on \$6,000 for 3 years at a rate of 3% per annum compounded half-yearly will be?
A) \$591.52
B) \$604.25
C) \$617.52
D) \$631.25

C) \$617.52

The compound interest on \$5,000 for 2 years at an annual rate of 1% compounded annually will be?
A) \$100.00
B) \$101.00
C) \$102.01
D) \$103.03