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ACCA Applied Knowledge Simple & Compound Interest Questions
Practise simple & compound interest (quantitative aptitude) for the ACCA Applied Knowledge exams (BT, MA, FA): 10 multiple-choice questions, each with the correct answer and a worked explanation. Click an option to check it, or “New questions” for another set.
Simple & Compound Interest practice
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Q1.Find the simple interest on £33,000 at 4% per annum for 4 years.
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Answer: C — £5,280
SI = P × R × T / 100 = 33,000 × 4 × 4 / 100 = £5,280.
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Q2.Find the compound interest on £28,000 at 5% per annum for 2 years, compounded annually.
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Answer: B — £2,870
A = P(1 + R/100)^T = 28,000 × 1.05^2 = 30,870; CI = A − P = £2,870.
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Q3.Find the simple interest on £22,000 at 4% per annum for 4 years.
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Answer: A — £3,520
SI = P × R × T / 100 = 22,000 × 4 × 4 / 100 = £3,520.
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Q4.Find the simple interest on £59,000 at 6% per annum for 3 years.
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Answer: B — £10,620
SI = P × R × T / 100 = 59,000 × 6 × 3 / 100 = £10,620.
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Q5.Find the compound interest on £35,000 at 5% per annum for 3 years, compounded annually.
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Answer: D — £5,516.88
A = P(1 + R/100)^T = 35,000 × 1.05^3 = 40,516.88; CI = A − P = £5,516.88.
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Q6.Find the simple interest on £50,000 at 4% per annum for 3 years.
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Answer: C — £6,000
SI = P × R × T / 100 = 50,000 × 4 × 3 / 100 = £6,000.
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Q7.Find the simple interest on £56,000 at 5% per annum for 3 years.
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Answer: B — £8,400
SI = P × R × T / 100 = 56,000 × 5 × 3 / 100 = £8,400.
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Q8.Find the simple interest on £9,000 at 10% per annum for 3 years.
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Answer: C — £2,700
SI = P × R × T / 100 = 9,000 × 10 × 3 / 100 = £2,700.
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Q9.Find the compound interest on £22,000 at 10% per annum for 2 years, compounded annually.
Show answer & explanation
Answer: B — £4,620
A = P(1 + R/100)^T = 22,000 × 1.10^2 = 26,620; CI = A − P = £4,620.
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Q10.Find the simple interest on £23,000 at 7.5% per annum for 5 years.
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Answer: B — £8,625
SI = P × R × T / 100 = 23,000 × 7.5 × 5 / 100 = £8,625.
How to approach simple & compound interest questions
Simple interest grows linearly (PRT/100); compound interest multiplies by (1 + r/100) each period. For 2 years, CI − SI = P(r/100)² — a common shortcut.
About ACCA Applied Knowledge
ACCA Applied Knowledge exams (BT, MA, FA) — conducted by Association of Chartered Certified Accountants (ACCA). The first ACCA level: Business & Technology, Management Accounting and Financial Accounting.
Original practice questions written for this site in the style and difficulty of each exam’s syllabus. They are not past papers and the site is not affiliated with any exam body. Exam patterns, marking schemes and syllabi change — always check the latest official notification.
ACCA Applied Knowledge practice topics
| Topic | Section | Question source |
|---|---|---|
| Accounting & Finance | Finance | Calculated + question bank |
| Simple & Compound Interest | Quantitative aptitude | Calculated (new numbers every set) |
| Economy & Banking Awareness | General awareness | Question bank |