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Compound Interest

Free 100+ Compound Interest MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Practise below with answers and explanations.

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Compound Interest — MCQs for Pakistan government job tests

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Compound Interest

Practice questions

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1.Hafeez invested Rs. 15,000 at an annual interest rate of 10%, compounded semi-annually. What will be the total amount he receives after one year?

2.A person deposits Rs. 200 at the end of each year and lends it at a compound interest rate of 5%. What will be the total amount after 3 years?

3.Calculate the compound interest earned on Rs. 25,000 invested for 3 years at an annual interest rate of 12%.

4.Shohaib placed Rs. 8000 in a fixed deposit scheme for 2 years with an annual compound interest rate of 5%. What will be the total amount received by Shohaib at the end of the tenure?

5.Afnan borrows Rs.6000 at a simple interest rate of 6% per annum and then invests the same amount at compound interest at the identical rate for two years. What is his net gain from this transaction?

6.Rayan invested money at two simple interest rates: 6% per annum and 7% per annum. If the interest earned from both investments is the same, what is the ratio of the amounts invested at these two rates?

7.If Rs.12,000 earns Rs.7,200 as simple interest over five years at a certain rate, what is the compound interest on the same principal and period at that rate?

8.What is the difference in compound interest earned on Rs. 12,000 at an annual rate of 20% when compounded annually versus semi-annually for one year?

9.The compound interest and simple interest on a certain principal amount at the same rate for two years are Rs.11730 and Rs.10200 respectively. What is the principal amount?

10.An individual earned Rs.48 more by investing a certain amount at compound interest rather than simple interest for 2 years at an annual rate of 8%. What was the initial amount invested?

11.If the compound interest on Rs. 44,000 after two years is Rs. 1,193.60, what would be the simple interest on the same principal, rate, and time period?

12.If the simple interest earned on Rs. 49,500 over three years is Rs. 17,820, what is the compound interest on the same principal, rate, and duration? (Round your answer to two decimal places.)

13.A man earns Rs.500 as simple interest on a certain principal amount at an annual rate of 5% over two years. Calculate the compound interest he would receive on double that principal after two years at the same interest rate.

14.An amount of Rs.4800 is invested with compound interest applied for three consecutive years. The interest rates are 10% for the first year, 20% for the second year, and 25% for the third year. What is the total interest earned after three years?

15.The compound interest accrued on a principal during the second and third years amounts to Rs.1200 and Rs.1440 respectively. What is the annual rate of interest?

16.Jameel invested Rs. 17,400 for a period of two years. If the compound interest earned at the end of this period is Rs. 1,783.50, what is the annual compound interest rate?

17.Calculate the compound interest earned on Rs.14,800 at an annual interest rate of 13.5% after two years. (Round your answer to the nearest whole number)

18.Sunil earned Rs.2828.80 as compound interest on a certain principal over two years at an annual interest rate of 8%. What is the total amount he received after two years, including the principal and interest?

19.If Kiran invests Rs. 8000 at an annual compound interest rate of 10% for 2 years, with interest compounded once per year, what will be the total amount he receives?

20.Calculate the total amount after 2 years on a principal of Rs. 5000, given the interest rate is 4% for the first year and 5% for the second year.

How to prepare with Compound Interest MCQs

  • Work through questions topic by topic, then revisit any you answered incorrectly.
  • Read explanations carefully—they often cover facts that repeat across PPSC, FPSC, and NTS papers.
  • Pair subject practice with past papers to see how Compound Interest appears in real exam conditions.

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