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CA Foundation Simple & Compound Interest Questions
Practise simple & compound interest (quantitative aptitude) for the Chartered Accountancy Foundation Examination: 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 compound interest on ₹12,000 at 5% per annum for 3 years, compounded annually.
Show answer & explanation
Answer: D — ₹1,891.5
A = P(1 + R/100)^T = 12,000 × 1.05^3 = 13,891.5; CI = A − P = ₹1,891.5.
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Q2.Find the compound interest on ₹27,000 at 10% per annum for 2 years, compounded annually.
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Answer: B — ₹5,670
A = P(1 + R/100)^T = 27,000 × 1.10^2 = 32,670; CI = A − P = ₹5,670.
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Q3.Find the compound interest on ₹8,000 at 5% per annum for 3 years, compounded annually.
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Answer: D — ₹1,261
A = P(1 + R/100)^T = 8,000 × 1.05^3 = 9,261; CI = A − P = ₹1,261.
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Q4.Find the simple interest on ₹38,000 at 5% per annum for 2 years.
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Answer: B — ₹3,800
SI = P × R × T / 100 = 38,000 × 5 × 2 / 100 = ₹3,800.
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Q5.Find the simple interest on ₹46,000 at 8% per annum for 2 years.
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Answer: D — ₹7,360
SI = P × R × T / 100 = 46,000 × 8 × 2 / 100 = ₹7,360.
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Q6.Find the simple interest on ₹33,000 at 9% per annum for 3 years.
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Answer: C — ₹8,910
SI = P × R × T / 100 = 33,000 × 9 × 3 / 100 = ₹8,910.
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Q7.Find the simple interest on ₹42,000 at 9% per annum for 6 years.
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Answer: A — ₹22,680
SI = P × R × T / 100 = 42,000 × 9 × 6 / 100 = ₹22,680.
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Q8.Find the simple interest on ₹29,000 at 12% per annum for 5 years.
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Answer: A — ₹17,400
SI = P × R × T / 100 = 29,000 × 12 × 5 / 100 = ₹17,400.
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Q9.Find the compound interest on ₹7,000 at 20% per annum for 2 years, compounded annually.
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Answer: C — ₹3,080
A = P(1 + R/100)^T = 7,000 × 1.20^2 = 10,080; CI = A − P = ₹3,080.
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Q10.Find the compound interest on ₹40,000 at 20% per annum for 2 years, compounded annually.
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Answer: A — ₹17,600
A = P(1 + R/100)^T = 40,000 × 1.20^2 = 57,600; CI = A − P = ₹17,600.
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 CA Foundation
Chartered Accountancy Foundation Examination — conducted by Institute of Chartered Accountants of India (ICAI). The entry level of the CA course: accounting, business laws, quantitative aptitude and business economics.
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.
CA Foundation practice topics
| Topic | Section | Question source |
|---|---|---|
| Accounting & Finance | Finance | Calculated + question bank |
| Simple & Compound Interest | Quantitative aptitude | Calculated (new numbers every set) |
| Averages & Statistics | Quantitative aptitude | Calculated (new numbers every set) |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |
| Economy & Banking Awareness | General awareness | Question bank |