Interest MCQ Quiz - Objective Question with Answer for Interest - Download Free PDF

Last updated on Jun 5, 2025

Simple and Compound Interest MCQ Quiz questions for your practice are provided with shortcuts and tricks to help get to the solution faster. These Interest Question Answers will help the candidates practice for several competitive exams, entrance exams and interviews. Real time examples will help the candidates get the concepts of the Interest Objective Questions easily and at a faster pace. Start practising today!

Latest Interest MCQ Objective Questions

Interest Question 1:

A sum of ₹9,960 was borrowed at 7.5% per annum compound interest and paid back in two equal annual instalments. What was the amount of each instalment?

  1. 5,475
  2. 5,547
  3. 5,745
  4. 5,457
  5. None of the above

Answer (Detailed Solution Below)

Option 2 : 5,547

Interest Question 1 Detailed Solution

Given

Loan amount = ₹9,960

Interest rate = 7.5% per annum compounded annually

Repayment period = 2 years

Shortcut Trick 

Rate of interest = 7.5%

If Principal = 100

Amount = 107.5

So

Principal : Amount = 100 : 107.5 = 40 : 43

So  

                    Principal      Installment

First year          40               43

Second year     402             432

Both installments are equal so

                       Principal      Installment 

First year        40 × 43        43 × 43      

Second year     402               432

So

Total Principal = 40 × 43 + 402 = 3320

3320 units = Rs. 9960

1 unit = 3

so

Installment = 432 × 3 = Rs. 5547

Interest Question 2:

P invests Rs (X − 5000) at a compound interest rate of R% per annum for 2 years, while Q invests Rs (X + 2000) at 2R% per annum for the same period. The ratio of their investments is given to be 5 : 7. Find the difference in the compound interest earned by A and B after 2 years.

  1. 2400
  2. 12400
  3. 5600
  4. Can’t be determined
  5. None of these

Answer (Detailed Solution Below)

Option 4 : Can’t be determined

Interest Question 2 Detailed Solution

Calculation

So, [ X – 5000] / [ X + 2000] = 5 /7

Or, 5𝑋 + 10000 = 7X – 35000

Or, 2𝑋 = 45000

Or, 𝑋 = 22500

So, Investment of P and Q is Rs 17500 and Rs 24500 respectively.

We don’t know the value of R So, answer can’t be determined.

(d) Can’t be determined

Interest Question 3:

A principal amount is invested at 12% per annum simple interest for a period of 4 years, 11 months, and 28 days in a scheme. The total amount received from this scheme is then invested for 2 years and 2 days in another scheme at 20% per annum compound interest. The compound interest earned from the second scheme is Rs. 1056.4. Find the approximate amount initially invested in the first scheme?

  1. 1950
  2. 1850
  3. 1450
  4. 1650
  5. 1500

Answer (Detailed Solution Below)

Option 5 : 1500

Interest Question 3 Detailed Solution

Calculation

We should take approx. values

So, four years 11 months and 28 days = 5 years

Two years 2 days = 2 years

And 1056.4 Rs = 1056

Equivalent rate of interest at rate of 20% p.a. for two years on compound

interest annually = (20 + 20 + ( 20 × 20) / 100 )% = 44%

Let amount invested in first scheme = 100x

So, amount invested in second scheme = 100x + 100x × (12× 5) /100

= 160x 

ATQ, 160x × (44 / 100) = 1056

Or, 1.6x = 24

x = 15

So, 100x = 1500

Interest Question 4:

A principal amount of ₹1200 grows to ₹1440 in 2 years. Calculate the rate of interest.

  1. 10%
  2. 12%
  3. 15%
  4. 8%

Answer (Detailed Solution Below)

Option 1 : 10%

Interest Question 4 Detailed Solution

Given:

Principal (P) = ₹1200

Amount (A) = ₹1440

Time (t) = 2 years

Formula Used:

Simple Interest (SI) = A - P

SI = \(\dfrac{P \times r \times t}{100}\)

Where, r = rate of interest

Calculations:

SI = \(\dfrac{P \times r \times t}{100}\):

240 = \(\dfrac{1200 \times r \times 2}{100}\)

⇒ 240 = 12 × r × 2

⇒ 240 = 24 × r

⇒ r = \(\dfrac{240}{24}\)

⇒ r = 10%

∴ The rate of interest is 10% per annum.

Interest Question 5:

A principal amount earns Rs. 420 as simple interest at an annual rate of 10% over 2 years. Calculate the principal amount.

  1. 2000 Rs
  2. 2100 Rs
  3. 4200 Rs
  4. 1900 Rs

Answer (Detailed Solution Below)

Option 2 : 2100 Rs

Interest Question 5 Detailed Solution

Given:

Simple Interest (SI) = ₹420

Annual Rate of Interest (R) = 10%

Time (T) = 2 years

Formula Used:

Simple Interest (SI) = (Principal (P) × Rate (R) × Time (T)) / 100

To find the Principal (P), rearrange the formula: P = (SI × 100) / (R × T)

Calculation:

P = (420 × 100) / (10 × 2)

P = 42000 / 20

P = 2100

∴ The principal amount is ₹2100.

Top Interest MCQ Objective Questions

On a certain sum of money, the compound interest for 2 years is Rs. 304.5 and the simple interest for the same period of time is Rs. 290. The rate of interest per annum:

  1. 9%
  2. 8%
  3. 11%
  4. 10%

Answer (Detailed Solution Below)

Option 4 : 10%

Interest Question 6 Detailed Solution

Download Solution PDF

Given:

C.I for 2 years = Rs. 304.5

S.I for 2 years = Rs. 290

Calculation:

S.I for 1 year = Rs. (290/2) = Rs. 145

Difference between S.I and C.I = Rs. (304.5 – 290)

⇒ Rs. 14.5

Rate of interest per annum = (14.5/145) × 100%

⇒ 10%

∴ The rate of interest per annum is 10%

Find the principal if the interest compounded at the rate of 12% per annum, compounding annually for 2 years is Rs. 1,908.

  1. Rs. 6,500
  2. Rs. 5,400
  3. Rs. 7,500
  4. Rs. 4,500

Answer (Detailed Solution Below)

Option 3 : Rs. 7,500

Interest Question 7 Detailed Solution

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Given

Compound interest after 2 years = Rs. 1,908

Rate of interest = 12% per annum

Concept:

CI = P [(1 + r/100)t - 1]

Solution:

CI = P [(1 + r/100)t - 1]

⇒ 1908 = P [(1 + 12/100)2 - 1]

⇒ 1908 = P [(1 + 3/25)2 - 1]

⇒ 1908 = P [(28/25)2 - 1]

⇒ 1908 = P [784/625 - 1]

⇒ 1908 = P × 159 / 625

⇒ P = 1908 × 625 / 159

⇒ P = 12 × 625 = Rs. 7500

Hence, the principal is Rs. 7,500.

A sum becomes 27 times in 3 years, compounded annually at a certain rate of interest. Calculate annual interest rate.

  1. 150%
  2. 100%
  3. 300%
  4. 200%

Answer (Detailed Solution Below)

Option 4 : 200%

Interest Question 8 Detailed Solution

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Gi​ven:

Amount = 27 P in 3 years

Concept:

In compound interest, the ratio of the amount and the principal is given by:

\(\frac{A}{P} = (1 + \frac{R}{100})^n\)

Calculation:

We know that,

\(\frac{A}{P} = (1 + \frac{R}{100})^n\)

\(⇒ \frac{27}{1} = (1 + \frac{R}{100})^3 \)

\(⇒ 3^3 = (1 + \frac{R}{100})^3 \)

\(⇒ 3 = (1 + \frac{R}{100}) \)

⇒ R/100 = 3 - 1 = 2

⇒ R = 200%

Hence, the annual interest rate is 200%.

Shortcut Trick

A sum becomes 27 times in 3 years

3x = 27

⇒ 3x = 33

⇒ x = 3

Rate = (x - 1) × 100%

⇒ (3 - 1) × 100% = 200%

∴ The annual interest rate is 200%.

A sum of money invested at a certain rate of simple interest per annum amounts to Rs. 14,522 in seven years and to Rs. 18,906 in eleven years. Find the sum invested (in Rs.). 

  1. 6850
  2. 6900
  3. 6800
  4. 6750

Answer (Detailed Solution Below)

Option 1 : 6850

Interest Question 9 Detailed Solution

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Given: 

Amount produce in 7 years = Rs.14522

Amount produce in 11 years = Rs.18906

Formula used:

Simple interest (S.I) = (P × R × T)/100

Calculation:

Amount produce in 7 years = Rs.14522

Amount produce in 11 years = Rs.18906

S.I produced in (11 - 7) = 4 years = (18906 - 14522) = Rs.4384

S.I in 1 years = 4384/4 = 1096

Principal = 14522 - (1096 × 7)

⇒ (14522 - 7672) = Rs.6850

∴ The correct answer is Rs.6850.

A sum becomes Rs. 10650 in 5 years. and Rs. 11076 in 6 years at simple interest. What is the sum?

  1. Rs. 8946
  2. Rs. 8740
  3. Rs. 8520
  4. Rs. 8800

Answer (Detailed Solution Below)

Option 3 : Rs. 8520

Interest Question 10 Detailed Solution

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Concept Used:

In this type of question, number can be calculated by using the below formulae

Formula Used:

If a sum with simple interest rate, amounts to Rs. ‘A’ in y years. and Rs. ‘B’ in z years. then,

P = (A × z – B × y)/(z – y)

Calculation:

Using the above formulae, we have

P = (10650 × 6 – 11076 × 5)

P = Rs. 8520

Required principal is Rs. 8520 

Alternate Method Sunny 28.7.21 

A sum becomes Rs. 10650 in 5 years. and Rs. 11076 in 6 years. at simple interest

Interest of 1 year = 11076 – 10650 = Rs. 426

Interest of 5 year = 426 × 5 = 2130

∴ Required principal = 10650 – 2130 = Rs. 8520

What is the difference (in Rs.) between the simple interest and the compound interest on a sum of Rs. 8000 for \(2\frac{2}{5}\) years at the rate of 10% p.a. when the interest is compounded yearly?

  1. 152.80
  2. 150
  3. 155
  4. 147.20

Answer (Detailed Solution Below)

Option 4 : 147.20

Interest Question 11 Detailed Solution

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Given:

Principal = Rs. 8000

Rate = 10%

Time =  \(2\frac{2}{5}\) years

Formula used:

SI = (P × t × r)/100

CI = P(1 + r/100)t - P

P = Principal

t = time

r = rate

Calculation:

SI = (8000 × 12 × 10)/(100 × 5)

⇒ Rs. 1920

CI = 8000[1 + 10/100]2 × [1 + 4/100] - 8000

⇒ 8000 × 11/10 × 11/10 × 26/25 - 8000

⇒ 10067.2 - 8000

⇒ 2067.2

Difference = 2067.2 - 1920 = 147.2

∴ Required difference is Rs. 147.2

Shortcut Trick qImage65f494db3692bb77a5668945

So, the difference of CI and SI = 80 + 32 + 32 + 3.2

∴ The Difference of CI and SI = 147.2.

Rs. 15,000 will amount to Rs. 19,965 in 15 months at ______ per annum and the compund interest is calculated on every 5 months.

  1. 20%
  2. 24%
  3. 30%
  4. 16%

Answer (Detailed Solution Below)

Option 2 : 24%

Interest Question 12 Detailed Solution

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Given:

Principal = Rs. 15,000

Amount = Rs. 19,965

Time = 15 months

Condition = on every 5 months

Concept used:

Condition = on every 5 months

New rate = Rate × 5/12

New time = Time × 12/5

Calculations:

Let the new rate be R%

According to the question,

New time = Time × 12/5

⇒ 15 × 12/5 = 36 months = 3 years

F2 Savita Railways 17-6-22 D9

Simplifying the values by dividing it by 15 to its lowest possible values, we get Principal = 1000 and Amount = 1331

Now, new time period is 3 years, hence taking the cube roots of Principal and Amount,

F2 Savita Railways 17-6-22 D10

⇒ R = 10%

New rate = Rate × 5/12

⇒ 10 = Rate × 5/12

⇒ Rate = (10 × 12)/5

⇒ Rate = 24%

∴ Rate is 24% per annum.

Alternate MethodGiven:

Principal = Rs. 15,000

Amount = Rs. 19,965

Time = 15 months

Condition = on every 5 months

Concept used:

Condition = on every 5 months

New rate = Rate × 5/12

New time = Time × 12/5

Formulae used:

(1) Effective rate for 3 years = 3R + 3R2/100 + R3/10000

(2) A = P(1 + R/100)T

Where, A → Amount

P → Principal

R → Rate of interest

T → Time

Calculations:

According to the question,

Let the new rate be R%

New time = Time × 12/5

⇒ 15 × 12/5 = 36 months = 3 years

Amount = P(1 + R/100)T

⇒ 19,965 = 15,000(1 + R/100)3

⇒ 19,965/15,000 = (1 + R/100)3

⇒ 1331/1000 = (1 + R/100)3

⇒ (11/10)3 = (1 + R/100)3

⇒ 11/10 = 1 + R/100

⇒ (11/10) – 1 = R/100

⇒ 1/10 = R/100

⇒ R = 10%

New rate = Rate × 5/12

⇒ 10 = Rate × 5/12

⇒ Rate = (10 × 12)/5

⇒ Rate = 24%

∴ Rate is 24% per annum

Additional InformationCompound Interest means interest earned on interest. Simple interest always occurs on only principal but compound interest also occurs on simple interest. So, if time period is 2 years, compound interest will also apply on simple interest of first year.

A sum of money at simple interest doubles in 10 years. In how many years, at the same rate, will it be tripled?

  1. 30 years
  2. 25 years
  3. 20 years
  4. 15 years

Answer (Detailed Solution Below)

Option 3 : 20 years

Interest Question 13 Detailed Solution

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Given:

Amount = 2P

Time = 10 years

Formula used:

SI = (PRT/100) 

Amount = (PRT/100) + P

Calculation:

Amount = (PRT/100) + P

2P = (PR/10) + P 

⇒ P = (PR/10) 

⇒ R = 10%

According to the question, Amount = 3P

3P = (10PT/100) + P 

⇒ 2P = (PT/10)

⇒ T = 20 years

 ∴ Time taken to triple the amount is 20 years.

Shortcut TrickInterest = 2P - P = P = 100% of principle

Time = 10 year

Hence, rate = Interest/Time = 100/10 = 10%

New interest = 3P - P = 2P = 200% of principle

∴ Time = Interest/Rate = 200/10 = 20 Years

A sum of money was invested at the rate of 7.5% simple interest per annuum for 4 years. If the investments were for 5 years, the interest earned would have been Rs. 375 more. What was the initial sum invested?

  1. Rs. 4,500
  2. Rs. 5,000
  3. Rs. 3,750
  4. Rs. 4,750

Answer (Detailed Solution Below)

Option 2 : Rs. 5,000

Interest Question 14 Detailed Solution

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Interest earned for 5 years – Interest earned for 4 years = 375

Let the principal be Rs. P,

⇒ (P × 7.5 × 5) /100 – (P × 7.5 × 4) /100 = 375

⇒ (37.5 × P) /100 – (30 × P) /100 = 375

⇒ (7.5 × P) /100 = 375

∴ P = Rs. 5000

A sum of money lent out at simple interest amounts to Rs. 715 after 3 years and to Rs. 990 after a further period of 5 years. Find the sum.

  1. Rs. 550
  2. Rs. 600
  3. Rs. 590
  4. Rs. 625

Answer (Detailed Solution Below)

Option 1 : Rs. 550

Interest Question 15 Detailed Solution

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Given:

Amount after 3 years = Rs. 715

Amount after 8 years  = Rs. 990

Formula used:

A = P + SI

Where A = amount , P = Principle

And SI = Simple interest

Calculation:

Amount in 3 years = Rs. 715

Now it is given in the question, amount for the time of further 5 years i.e 

Total time = 5 years + 3 years = 8 years.

Amount in 8 years = Rs. 990

SI for 5 years = Amount after 8 years  - Amount after 3 years

⇒ SI for 5 years = 990 - 715 = 275

SI for 1 years = 275/5 = 55

SI for 3 years = 55 × 3 = Rs.165

P = Amount of 3 years - SI of 3 years

⇒ P = 715 - 165 = 550

∴  The sum is Rs. 550

Confusion Points It is given in the question that after further 5 years amount is calculated , so total time will be (5 +3) years = 8 years. not 5 years.

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