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IBPS RRB Officer Scale 3 Compound Interest — practice questions

Explore 25 free Compound Interest questions in IBPS RRB Officer Scale 3 Quantitative Aptitude. Open each question or exercise to read its content, reference answers and available explanation.

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Compound Interest questions and exercises with answers

Showing questions 1–25 of 25.

A sum of ₹6000 is invested at 20% per annum. If interest is compounded half-yearly, the amount received after 18 months will be:Read the answer and worked solution →The compound interest on Rupees 1,60,000 for 2 years at 10% per annum, compounded semi-annually, is:Read the answer and worked solution →Complete the idea of compound interestRead the answer and worked solution →Simple or compound?Read the answer and worked solution →True or false: compound interestRead the answer and worked solution →Order the steps: two years of compound interestRead the answer and worked solution →Assertion and reason: compoundingRead the answer and worked solution →Two are true, one is notRead the answer and worked solution →Three of these are wrong. Find the one that holds.Read the answer and worked solution →Comparing the twoRead the answer and worked solution →Tap every statement true of compound interestRead the answer and worked solution →Flip and pair: which interest does this?Read the answer and worked solution →Order the steps: three years of compoundingRead the answer and worked solution →True or false: how compounding buildsRead the answer and worked solution →Compounding in practiceRead the answer and worked solution →Which base is being used?Read the answer and worked solution →Assertion and reason: compoundingRead the answer and worked solution →Complete the comparisonRead the answer and worked solution →Two are true, one is notRead the answer and worked solution →Tap every sign that compounding is at workRead the answer and worked solution →Spot the odd one outRead the answer and worked solution →Flip and pair: signal with the interest typeRead the answer and worked solution →Which is better for whom?Read the answer and worked solution →True or false: telling them apartRead the answer and worked solution →Three of these are wrong. Find the one that holds.Read the answer and worked solution →

Worked practice questions

A sum of ₹6000 is invested at 20% per annum. If interest is compounded half-yearly, the amount received after 18 months will be:

  1. ₹7,896
  2. ₹7,986
  3. ₹7,800
  4. ₹7,928
Show answer and solution

Correct answer: B. ₹7,986

1. Half-yearly rate = 20%/2 = 10%; number of half-years in 18 months = 3. 2. Amount = 6000 × (1 + 10/100)³ = 6000 × (1.1)³. 3. = 6000 × 1.331 = ₹7,986. _Source: RRB Group D CEN-02/2018 PYQ, Q.24._

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The compound interest on Rupees 1,60,000 for 2 years at 10% per annum, compounded semi-annually, is:

  1. Rupees 34,400
  2. Rupees 30,000
  3. Rupees 34,480
  4. Rupees 34,481
Show answer and solution

Correct answer: D. Rupees 34,481

1. Semi-annual rate = 5%, number of periods = 4. 2. Amount = 160000 x (1.05)^4 = 160000 x 1.21550625 = 194481. 3. CI = 194481 - 160000 = 34481. _Source: RRB Group D CEN-02/2018 PYQ, Q.47._

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Complete the idea of compound interest

Read exercise and reference answers
Missing parts
  1. Answer
    previous
    Choices
    1. previous
    2. first
    3. last
  2. Answer
    amount
    Choices
    1. amount
    2. rate
    3. principal
  3. Answer
    plus
    Choices
    1. plus
    2. minus
    3. times
Complete the statement
Compound interest is the interest calculated on the {0} year's {1}, where that amount is the principal {2} the interest so far.
One clause separates it from simple interest. Source: syllabus Maths, Ch 7 Comparing Quantities.

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