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CMA Foundation Simple & Compound Interest Questions
Practise simple & compound interest (quantitative aptitude) for the Cost & Management 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 simple interest on ₹36,000 at 12% per annum for 3 years.
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Answer: D — ₹12,960
SI = P × R × T / 100 = 36,000 × 12 × 3 / 100 = ₹12,960.
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Q2.Find the compound interest on ₹22,000 at 10% per annum for 3 years, compounded annually.
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Answer: A — ₹7,282
A = P(1 + R/100)^T = 22,000 × 1.10^3 = 29,282; CI = A − P = ₹7,282.
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Q3.Find the compound interest on ₹6,000 at 10% per annum for 2 years, compounded annually.
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Answer: D — ₹1,260
A = P(1 + R/100)^T = 6,000 × 1.10^2 = 7,260; CI = A − P = ₹1,260.
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Q4.Find the compound interest on ₹39,000 at 10% per annum for 3 years, compounded annually.
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Answer: A — ₹12,909
A = P(1 + R/100)^T = 39,000 × 1.10^3 = 51,909; CI = A − P = ₹12,909.
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Q5.Find the simple interest on ₹21,000 at 12% per annum for 4 years.
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Answer: C — ₹10,080
SI = P × R × T / 100 = 21,000 × 12 × 4 / 100 = ₹10,080.
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Q6.Find the simple interest on ₹55,000 at 7.5% per annum for 4 years.
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Answer: C — ₹16,500
SI = P × R × T / 100 = 55,000 × 7.5 × 4 / 100 = ₹16,500.
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Q7.Find the compound interest on ₹2,000 at 10% per annum for 2 years, compounded annually.
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Answer: B — ₹420
A = P(1 + R/100)^T = 2,000 × 1.10^2 = 2,420; CI = A − P = ₹420.
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Q8.Find the compound interest on ₹24,000 at 5% per annum for 3 years, compounded annually.
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Answer: A — ₹3,783
A = P(1 + R/100)^T = 24,000 × 1.05^3 = 27,783; CI = A − P = ₹3,783.
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Q9.Find the compound interest on ₹11,000 at 20% per annum for 3 years, compounded annually.
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Answer: A — ₹8,008
A = P(1 + R/100)^T = 11,000 × 1.20^3 = 19,008; CI = A − P = ₹8,008.
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Q10.Find the simple interest on ₹43,000 at 9% per annum for 4 years.
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Answer: B — ₹15,480
SI = P × R × T / 100 = 43,000 × 9 × 4 / 100 = ₹15,480.
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 CMA Foundation
Cost & Management Accountancy Foundation Examination — conducted by Institute of Cost Accountants of India (ICMAI). The entry level of the CMA course, covering accounting, law, business mathematics and statistics.
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.
CMA 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) |
| Economy & Banking Awareness | General awareness | Question bank |