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

Last updated on Jul 3, 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 principal amount of ₹9800 is invested at an interest rate of 78% per annum for 27 years. Calculate the simple interest earned on the investment.

  1. 209388
  2. 206388
  3. 206300
  4. 206000

Answer (Detailed Solution Below)

Option 2 : 206388

Interest Question 1 Detailed Solution

Given:

Principal (P) = ₹9800

Rate of interest (R) = 78% per annum

Time (T) = 27 years

Formula used:

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

Calculation:

SI = (9800 × 78 × 27) / 100

SI = (9800 × 2106) / 100

SI = 20638800 / 100

SI = ₹206388

∴ The simple interest earned on the investment is: ₹206388

Interest Question 2:

A principal amount of 100 Rs is invested at an interest rate of 10% for 1 year. What is the simple interest?

  1. 20 Rs
  2. 25 Rs
  3. 10 Rs
  4. 15 Rs

Answer (Detailed Solution Below)

Option 3 : 10 Rs

Interest Question 2 Detailed Solution

Given:

Principal (P) = ₹100

Rate of interest (R) = 10%

Time (T) = 1 year

Formula used:

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

Calculation:

SI = (100 × 10 × 1) / 100

SI = 1000 / 100

SI = ₹10

∴ The simple interest is: ₹10

Interest Question 3:

Mini invested Rs. 10000 at a [x +6] rate (p.a.) of compound interest, compounded annually for 2 years. If she received Rs. 3456 as interest after 2 years, Find the Compound interest at [x + 10] rate of interest?

  1. 4600
  2. 4700
  3. 4900
  4. 4400
  5. 4200

Answer (Detailed Solution Below)

Option 4 : 4400

Interest Question 3 Detailed Solution

Given:

Principal (P) = ₹10000

Time (t) = 2 years

CI at rate (x + 6)% = ₹3456

Formula used:

Amount A = P

CI = A - P

Calculations:

Let r = x + 6

⇒ 10000 × (1 + r/100)2 = 10000 + 3456 = 13456

⇒ (1 + r/100)2 = 13456 ÷ 10000 = 1.3456

⇒ √1.3456 = 1 + r/100

⇒ 1.16 = 1 + r/100

⇒ r = 0.16 × 100 = 16 ⇒ x + 6 = 16 ⇒ x = 10

Now, new rate = x + 10 = 20%

CI = 10000 × (1 + 20/100)2 - 10000

⇒ CI = 10000 × (1.2)2 - 10000

⇒ CI = 10000 × 1.44 - 10000 = 14400 - 10000 = ₹4400

∴ Compound interest at (x + 10)% rate is ₹4400.

Interest Question 4:

A man buys a motorcycle by making a cash down payment of Rs. 10,000 and promises to pay two more yearly installments of Rs. 12,100 each for the next two years. If the rate of interest is 10% per annum, compounded yearly, the cash value of the motorcycle is:

  1. Rs. 34,200
  2. Rs. 32,100
  3. Rs. 31,000
  4. Rs. 21,000
  5. Rs. 11,000

Answer (Detailed Solution Below)

Option 3 : Rs. 31,000

Interest Question 4 Detailed Solution

Given:

Down payment = Rs. 10,000

Two equal annual installments = Rs. 12,100 each

Interest rate = 10% per annum, compounded yearly

Calculation:

Present value (PV) of the first installment (due after 1 year):

⇒ PV = 12100 ÷ (1 + 10/100) = 12100 ÷ 1.10 = Rs. 11000

Present value (PV) of the second installment (due after 2 years):

⇒ PV = 12100 ÷ (1.10 × 1.10) = 12100 ÷ 1.21 = Rs. 10000

Total cash value of the motorcycle:

⇒ Cash value = Down payment + PV of 1st installment + PV of 2nd installment

⇒ Cash value = 10000 + 11000 + 10000 = Rs. 31,000

Thus, the correct answer is Rs. 31,000.

Interest Question 5:

If Rs. 72 amounts to Rs. 104.4 in 3 years, what will Rs. 120 amount to in 5 years at the same rate percent per annum?

  1. Rs.  450
  2. Rs.  330
  3. Rs.  210
  4. Rs. 215
  5. None of the above

Answer (Detailed Solution Below)

Option 3 : Rs.  210

Interest Question 5 Detailed Solution

Given

Rs. 72 amounts to Rs. 104.4 in 3 years

Formula used:

Simple Interest = (Principal x Rate x Time) / 100

Calculation

Interest = Amount - Principal

Interest = 104.4 - 72 = 32.4

⇒ 32.4 = (72 x Rate x 3) / 100

⇒ Rate = (100 × 32.4) / (72 x 3) 

⇒ Rate = 3240 / 216

⇒ Rate = 15%

Now,

Simple Interest = (120 x 15 x 5) / 100

Simple Interest = 9000 / 100

Simple Interest = 90

Amount = 120 + 90

Amount = 210

The amount will be 210.

Shortcut TrickSince the rate is the same in both cases, we can use the ratio method, by calculation interest for the same number of years.

3 year interest = 104.4 - 72 = 32.4

1 year interest = 32.4/3 = 10.8

5 year interest = 10.8 × 5 = 54

Let the amount on the sum of 120 be a.

⇒ (72 + 54)/72 = a/120

⇒ 7/4 = a/120

⇒ a = 210

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

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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:

AP=(1+R100)n

Calculation:

We know that,

AP=(1+R100)n

271=(1+R100)3

33=(1+R100)3

3=(1+R100)

⇒ 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 225 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 =  225 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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