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CFA Level I Simple & Compound Interest Questions
Practise simple & compound interest (quantitative aptitude) for the CFA Program Level I: 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 $8,000 at 5% per annum for 2 years, compounded annually.
Show answer & explanation
Answer: D — $820
A = P(1 + R/100)^T = 8,000 × 1.05^2 = 8,820; CI = A − P = $820.
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Q2.Find the simple interest on $7,000 at 5% per annum for 5 years.
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Answer: A — $1,750
SI = P × R × T / 100 = 7,000 × 5 × 5 / 100 = $1,750.
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Q3.Find the compound interest on $20,000 at 10% per annum for 2 years, compounded annually.
Show answer & explanation
Answer: C — $4,200
A = P(1 + R/100)^T = 20,000 × 1.10^2 = 24,200; CI = A − P = $4,200.
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Q4.Find the simple interest on $46,000 at 5% per annum for 2 years.
Show answer & explanation
Answer: A — $4,600
SI = P × R × T / 100 = 46,000 × 5 × 2 / 100 = $4,600.
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Q5.Find the simple interest on $21,000 at 10% per annum for 6 years.
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Answer: D — $12,600
SI = P × R × T / 100 = 21,000 × 10 × 6 / 100 = $12,600.
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Q6.Find the simple interest on $18,000 at 12% per annum for 4 years.
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Answer: A — $8,640
SI = P × R × T / 100 = 18,000 × 12 × 4 / 100 = $8,640.
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Q7.Find the compound interest on $37,000 at 20% per annum for 2 years, compounded annually.
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Answer: C — $16,280
A = P(1 + R/100)^T = 37,000 × 1.20^2 = 53,280; CI = A − P = $16,280.
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Q8.Find the compound interest on $18,000 at 10% per annum for 3 years, compounded annually.
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Answer: D — $5,958
A = P(1 + R/100)^T = 18,000 × 1.10^3 = 23,958; CI = A − P = $5,958.
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Q9.Find the simple interest on $41,000 at 6% per annum for 6 years.
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Answer: C — $14,760
SI = P × R × T / 100 = 41,000 × 6 × 6 / 100 = $14,760.
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Q10.Find the compound interest on $15,000 at 10% per annum for 2 years, compounded annually.
Show answer & explanation
Answer: D — $3,150
A = P(1 + R/100)^T = 15,000 × 1.10^2 = 18,150; CI = A − P = $3,150.
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 CFA Level I
CFA Program Level I — conducted by CFA Institute. Investment tools, quantitative methods, economics, ethics and financial reporting fundamentals.
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.
CFA Level I practice topics
| Topic | Section | Question source |
|---|---|---|
| Accounting & Finance | Finance | Calculated + question bank |
| Simple & Compound Interest | Quantitative aptitude | Calculated (new numbers every set) |
| Probability & Combinatorics | Mathematics | Calculated (new numbers every set) |
| Averages & Statistics | Quantitative aptitude | Calculated (new numbers every set) |
| Economy & Banking Awareness | General awareness | Question bank |