Compound Interest – General Questions

1. A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1^st January and 1^st July of a year. At the end of the year, the amount he would have gained by way of interest is:

A. Rs. 120
B. Rs. 121
C. Rs. 122
D. Rs. 123

2. The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

A. 625
B. 630
C. 640
D. 650

3. There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?

A. Rs. 2160
B. Rs. 3120
C. Rs. 3972
D. Rs. 6240
E. None of these

4. What is the difference between the compound interests on Rs. 5000 for 1 1/2 year at 4% per annum compounded yearly and half-yearly?

A. Rs. 2.04
B. Rs. 3.06
C. Rs. 4.80
D. Rs. 8.30

5. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

A. 2
B. 2 1/2
C. 3
D. 4