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Home › Banking › Numerical Ability - Compound Interest

Numerical Ability - Compound Interest — Banking Questions & Practice

Practise 100 Numerical Ability - Compound Interest questions from Banking for competitive exams such as UPSC, Banking, SSC and Railway. Read the worked questions below, check every answer with an explanation, and track what you get wrong.

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Practice questions on Numerical Ability - Compound Interest — with answers

Try each question first, then open the answer. Explanations are included.

1. A bank deposit of Rs. 3,500 earns compound interest at 7.5% per annum, compounded annually, for 3 years. What is the compound interest earned?

  1. ARs. 1,174.14
  2. BRs. 1,095.26
  3. CRs. 848.04
  4. DRs. 787.50
Show answer

Answer: C

CI = P(1+R/100)^T - P = 3500(1+7.5/100)^3 - 3500 = Rs. 848.04.

2. A bank deposit of Rs. 3,000 earns compound interest at 7% per annum, compounded annually, for 2 years. What is the compound interest earned?

  1. ARs. 420
  2. BRs. 564.30
  3. CRs. 675.13
  4. DRs. 434.70
Show answer

Answer: D

CI = P(1+R/100)^T - P = 3000(1+7/100)^2 - 3000 = Rs. 434.7.

3. A bank deposit of Rs. 5,000 earns compound interest at 4% per annum, compounded annually, for 2 years. What is the compound interest earned?

  1. ARs. 618
  2. BRs. 400
  3. CRs. 408
  4. DRs. 624.32
Show answer

Answer: C

CI = P(1+R/100)^T - P = 5000(1+4/100)^2 - 5000 = Rs. 408.0.

4. A bank deposit of Rs. 1,500 earns compound interest at 10% per annum, compounded annually, for 3 years. What is the compound interest earned?

  1. ARs. 607.39
  2. BRs. 496.50
  3. CRs. 696.15
  4. DRs. 450
Show answer

Answer: B

CI = P(1+R/100)^T - P = 1500(1+10/100)^3 - 1500 = Rs. 496.5.

5. A bank deposit of Rs. 1,500 earns compound interest at 6% per annum, compounded annually, for 2 years. What is the compound interest earned?

  1. ARs. 185.40
  2. BRs. 286.52
  3. CRs. 180
  4. DRs. 249.60
Show answer

Answer: A

CI = P(1+R/100)^T - P = 1500(1+6/100)^2 - 1500 = Rs. 185.4.

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