Business Mathematics MCQ on Simple and Compound interest
Business Mathematics MCQ on Simple and Compound interest
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1. The money borrowed or lent for a certain period is:
(a) Amount
(b) Principal
(c) Interest
(d) Loan
Answer (b) Principal
2. The extra amount paid by the borrower to the lender is:
(a) Amount
(b) Principal
(c) Interest
(d) Loan
Answer (c) Interest
3. The interest calculated at a fixed rate on the original amount of principal borrowed is:
(a) Amount
(b) Principal
(c) Simple Interest
(d) Compound Interest
Answer (c) Simple Interest
4. The interest calculated on accumulated sum of the principal.
(a)Compound Interest
(b) Principal
(c) Simple Interest
(d) Amount
Answer (a)Compound Interest
5. The difference between the amount and the principal is:
(a) Amount
(b) Principal
(c) Interest
(d) Time
Answer (c) Interest
6. The simple interest on sum for one year is 60. What will be the compound on the same sum and at the same rate of interest for one year ?
(a) 66
(b) 60
(c) 70
(d) 76
Answer (b) 60
7. The time in which a sum of 10,000 fetches an interest of ₹ 3,500 at 5% is:
(a) 6 year
(b) 7 years
(c) 8 years
(d) 10 years
Answer (b) 7 years
8. The gradual decrease in the value of assets is:
(a) Appreciation
(b) Amortization
(c) Depreciation
(d) Depletion
Answer (c) Depreciation
9. What sum will amount to Rs.1000 in 2 years @5% p.a. compounded half yearly?
(a) 509.50
(b) 809.50
(c) 409.10
(d) 905.80
Answer (d) 905.80
10. The number of years in which a sum doubles itself at 4% p.a. compound is:
(a) 10 years
(b) 15 years
(c) 20 years
(d) 18 years
Answer (d) 18 years
11. In how many years the Simple interest on 600 at 10% rate will become 300?
(a) 5
(b) 3
(c) 2
(d) 6
Answer (a) 5
12. Rs.300 is lent on 8% simple interest. What amount will be repaid after 2.5 years?
(a) 400
(b) 500
(c) 350
(d) 360
Answer (d) 360
13. What is the rate of interest per annum if a sum fetches its one-fourth on simple interest at the end of five years?
(a) 5%
(b) 2.5%
(c) 4%
(d) None.
Answer (a) 5%
14. A sum of money doubles itself in 8 years at simple interest. What will be the rate of interest p.a.?
(a) 11.5
(b) 12
(c) 12.5
(d) 11.3
Answer (c) 12.5
15. How long it will take to increase the value of the sum by 40%, if the sum is invested at 5% p.a. simple interest?
(a) 5 years
(b) 6 years
(c) 7 years
(d) 8 years
Answer (d) 8 years
16. What will be the interest on 1,500 invested for 2 year at 5% compoun ?
(a) 158.25
(b) 153.25
(c) 143.25
(d) 140.25
Answer (b) 153.25
17. A man borrowed 3,125 and at the end of 2 years he repaid 4,500. What is rate of interest charged by the lender if it is compounded annually?
(a) 30%
(b) 25%
(c) 20%
(d) 15%
Answer (c) 20%
18. If the total interest earned after 2 years at the rate of 12% p.a. compounded annually is 254.40, then the principal amount is
(a) 1,200
(b) 1,100
(c) 1,000
(d) 900
Answer (c) 1,000
19. If the difference between C.I. and S.I. is 1,440 when the rate of interest is 12% per annum for a period of 2 years, what is the amount of investment?
(a) 1.5 lakh
(b) 1 lakh
(c) 2.5 lakh
(d) 1.2 lakh
Answer (b) 1 lakh
20. What would be the S.I. if the C.I. is 2,100 invested on a certain sum for 2 years at 10% per annum.
(a) 10,000
(b) 20,000
(c) 12,000
(d) 18,000
Answer (b) 20,000
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