Compound Interest 2

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Online Aptitude Tests: Compound Interest 2 for different Competitive Exams, Entrance Tests & Job Interviews. Test yourself. Take various online tests and find out how well you score before appearing in your upcoming interviews and written tests.

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Welcome to our FREE online test. Beware of anyone asking for money to take this test.

Total questions: 20

Time limit: 30 minutes

Each question is worth 1 point, and there are no penalties for wrong answers.

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Time remaining: 30:00
1. Which of the following factors affect compound interest?
  1. Principal amount
  2. Time period
  3. Frequency of compounding
  4. All of the above
2. An investment of ₹10,000 grows to ₹12,000 in 2 years. What is the annual compound interest rate?
  1. 8%
  2. 10%
  3. 12%
  4. 15%
3. What is the difference between the compound interest and the simple interest earned on ₹5,000 at 8% per annum for 2 years?
  1. ₹600
  2. ₹640
  3. ₹800
  4. ₹1,000
4. If the compound interest on a sum for 2 years at 12% per annum is ₹2,400, what is the sum?
  1. ₹10,000
  2. ₹9,600
  3. ₹9,800
  4. ₹9,200
5. How long will it take for an investment to double at an annual compound interest rate of 10%?
  1. 5 years
  2. Approximately 7 years
  3. 10 years
  4. 12 years
6. An investor deposits ₹10,000 in a savings account with an annual interest rate of 6%, compounded annually. After 5 years, how much will the investment be worth?
  1. ₹10,600
  2. ₹11,000
  3. ₹13,382.48
  4. ₹14,000
7. A student takes out a loan of ₹15,000 to finance education expenses. The loan carries an annual interest rate of 8%, compounded semi-annually. What will be the total amount owed after 3 years?
  1. ₹18,000
  2. ₹17,000
  3. ₹16,500
  4. ₹18,082.80
8. What is the effective annual rate of interest if the nominal interest rate is 10% and it is compounded quarterly?
  1. 10%
  2. 9.5%
  3. Approximately 10.38%
  4. 11%
9. A company offers an investment plan with an annual interest rate of 7.5%, compounded continuously. How much will ₹20,000 grow to after 4 years?
  1. ₹25,000
  2. ₹24,000
  3. Approximately ₹27,348.56
  4. ₹28,000
10. If the compound interest on an investment of ₹8,000 at 12% per annum for 3 years is ₹3,458.88, what is the amount of the investment?
  1. ₹11,500
  2. ₹10,000
  3. ₹9,500
  4. ₹12,000
11. An individual invests ₹25,000 in a mutual fund with an annual interest rate of 9%, compounded quarterly. How much will the investment be worth after 5 years?
  1. ₹32,500
  2. ₹30,000
  3. ₹39,017.10
  4. ₹35,000
12. What is the compound interest earned on ₹15,000 at 8% per annum for 3 years, compounded annually?
  1. ₹3,600
  2. ₹3,794.88
  3. ₹3,500
  4. ₹4,000
13. How much more interest will ₹10,000 earn if invested at 12% compounded annually instead of semi-annually for 2 years?
  1. ₹100
  2. ₹148.34
  3. ₹200
  4. ₹250
14. An amount of ₹8,000 is invested at an annual interest rate of 5% compounded monthly. What will be the amount after 3 years?
  1. ₹9,000
  2. ₹9,561.27
  3. ₹9,200
  4. ₹9,500
15. How long will it take for an investment of ₹20,000 to grow to ₹30,000 at an annual compound interest rate of 6%?
  1. Approximately 7 years
  2. Approximately 12 years
  3. Approximately 15 years
  4. Approximately 18 years
16. If an investment of ₹10,000 grows to ₹13,000 in 3 years, what is the annual compound interest rate?
  1. 20%
  2. Approximately 8.67%
  3. 25%
  4. 10%
17. An individual invests ₹15,000 in a fixed deposit account with an annual interest rate of 7%, compounded quarterly. What will be the total amount after 4 years?
  1. ₹18,000
  2. Approximately ₹19,579.72
  3. ₹20,000
  4. ₹21,000
18. What is the compound interest earned on ₹20,000 at 10% per annum for 2 years, compounded annually?
  1. ₹2,000
  2. ₹2,100
  3. ₹4,000
  4. ₹4,200
19. A sum of ₹12,000 amounts to ₹15,000 in 2 years at a certain rate of compound interest. What is the annual rate of interest?
  1. 10%
  2. Approximately 8.33%
  3. 12%
  4. 15%
20. How long will it take for an investment of ₹18,000 to triple at an annual compound interest rate of 5%?
  1. Approximately 12 years
  2. Approximately 24 years
  3. Approximately 36 years
  4. Approximately 48 years

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