**Compound Interest Aptitude Questions & Answers with explanation – Test Paper 1**

1) What is the compound interest on Rs. 2500 for 2 years at rate of interest 4% per annum?

- Rs. 180
- Rs. 204
- Rs. 210
- Rs. 220

The Correct answer is (2)

**Explanation:**

Principal (P) = Rs. 2500

Rate of interest(r) = 4%

Time (t) = 2 years

Compound Interest = Amount – Principal

2) What is the amount for a sum of money Rs.7500 at 6% rate of interest C.I. for 2 years?

- Rs. 8427
- Rs. 8417
- Rs. 8400
- Rs. 8390

The Correct answer is (A)

**Explanation:**

Principal = Rs. 7500

r = 6%

t = 2 years

3) On lending a certain sum of money on C.I. one gets Rs.9050 in 2 years and Rs.9500 in 3 years. What is the rate of interest?

- 5%
- 4.5%
- 5.5 %
- 6%

The Correct answer is (1)

**Explanation:**

Amount after 3 years = Rs. 9500

Amount after 2 years = Rs. 9050

Interest of one year= 9500 – 9050 = 450

t = 1 year

4) Ramesh borrowed Rs. 3600 at a certain rate of interest C.I. and the sum grows to Rs. 4624 in 2 years. What is the rate of interest?

- 12.3%
- 13.3%
- 14.3%
- 15.3%

The Correct answer is (2)

**Explanation:**

Principal = Rs. 3600

Amount = Rs. 4624

t = 2 years

We have;

5) On a certain sum of money the compound interest Rs. 318 is earned in 2 years. If the rate of interest is 12%, what is the principal amount?

- Rs. 1250
- Rs.1300
- Rs. 1200
- Rs. 1150

The Correct answer is (A)

**Explanation:**

We have;

C.I. = Rs. 318

r = 12%

t = 2 years

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