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NMAT Compound Interest — practice questions

Explore 24 free Compound Interest questions in NMAT 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 1–24 of 24.

Compound interest on Rs.10000 at 10% p.a. for 2 years 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

Compound interest on Rs.10000 at 10% p.a. for 2 years is:

  1. Rs. 2000
  2. Rs. 2100
  3. Rs. 2210
  4. Rs. 2310
Show answer and solution

Correct answer: B. Rs. 2100

1. Amount = 10000 × (1 + 10/100)² = 10000 × 1.21 = 12100. 2. CI = Amount − Principal = 12100 − 10000. 3. = 2100. Therefore Rs. 2100. _Source: KMAT Karnataka 2022 PYQ Q.59_

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Complete the idea of compound interest

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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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Simple or compound?

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Items
  1. Item
    Base is the original principal
    Category
    Simple interest
  2. Item
    Same interest every year
    Category
    Simple interest
  3. Item
    Three years is three times one year
    Category
    Simple interest
  4. Item
    Base is last year's amount
    Category
    Compound interest
  5. Item
    Interest rises year on year
    Category
    Compound interest
  6. Item
    A bank passbook where interest grows
    Category
    Compound interest
Categories
  1. Item
    Simple interest
  2. Item
    Compound interest
The base is what differs: the original principal, or the amount so far. Source: syllabus Maths, Ch 7 Comparing Quantities.

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More Quantitative Aptitude topics

Quantitative AptitudeNumber SystemAlgebraRatio and ProportionTime, Speed and DistanceTime and WorkPercentagesSimple Interest