GMAT Simple and Compound Interest — practice questions
22 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice GMAT Simple and Compound Interest in the app →A sum of 10,000 is borrowed at 15% per annum. The simple interest for one year is:The same 10,000 borrowed at 15% simple interest gives interest over two years of:The amount to be repaid after two years on that loan is:Heena borrows 20,000 at 8% compounded annually. The interest for the first year is:At the end of Heena's first year, the principal for the second year becomes:Interest for Heena's second year, worked on the new principal, is:The amount Heena pays at the end of two years is:Heena's total compound interest over the two years is:Simple interest on 20,000 at 8% for two years would have been:Compared with simple interest, compound interest costs Heena an extra:Starting with 100 rupees at 10% for three years, the simple interest earned is:Starting with the same 100 at 10% for three years, the compound interest earned is:Under simple interest the principal:The compound amount after n years is found from the formula using the bracket:Once the amount is known, compound interest is found as:Compound interest on 12600 for two years at 10% per annum works out to:The time period after which interest forms a new principal is called the:When interest is compounded half yearly, the number of conversion periods in a year is:For half yearly compounding, the rate used in each period is:If interest is compounded quarterly, the quarterly rate is:On 12000 at 10% per annum compounded half yearly, the interest for the first six months is:A city of 20,000 people growing at 5% a year from 1997 reaches, by the end of 2000, about: