Compound Interest Quiz

The Compound Interest Quiz invites you into the fascinating world of money growth over time. Did you know that compound interest is often called the “eighth wonder of the world” for its remarkable ability to multiply investments over time? This quiz explores various compound interest questions that sharpen your understanding of how investments grow. Many people confuse compound interest calculation with simple interest, but the compounding effect can significantly increase returns as interest earns interest itself. Whether you’re brushing up on basic compound interest problems or tackling rate questions, this quiz offers a great way to build your confidence with numbers. It’s a practical skill that touches everyday finances, making it more interesting than just textbook math.

Compound Interest

If $10,000 is invested at an interest rate of 10% per annum compounded yearly for 2 years, what is the amount?

$ 12,100

$ 13,800

$ 2,100

$ 12,000

What is the principal if the amount after 3 years at 5% interest compounded annually is $11,576.25?

$ 11,000

$ 10,800

$ 10,000

$ 10,200

If a sum triples in 10 years under compound interest, what is the approximate rate of interest per annum?

11.60%

9.50%

8.40%

7.30%

If the amount becomes $6,000 in 2 years from a principal of $5,000, what is the compound interest percentage?

9.50%

10.00%

10.50%

11.00%

Which of the following interest rates will yield the highest amount if $1,000 is invested for 2 years?

10% compounded annually

10% compounded semi-annually

10% compounded quarterly

10% compounded monthly

The difference between compound interest and simple interest on $5,000 for 2 years at 8% per annum is:

$ 48

$ 40

$ 32

$ 24

If the compound interest on a sum for 2 years at 10% per annum is $210, what is the principal?

$ 1,630

$ 1,420

$ 1,210

$ 1,000

If $1,000 is invested at 10% per annum, compounded annually, how long will it take to become $2,000?

8.96 years

7.27 years

6.72 years

9.13 years

If the rate of interest is 10% per annum compounded half-yearly, what is the equivalent annual rate?

10.40%

10.50%

10.25%

10.12%

What is the compound interest on $1,200 for 2 years at 12% per annum, compounded annually?

$ 305.28

$ 300.28

$ 295.28

$ 315.28

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Sample Questions from This Quiz

If $10,000 is invested at an interest rate of 10% per annum compounded yearly for 2 years, what is the amount?
If a sum triples in 10 years under compound interest, what is the approximate rate of interest per annum?
If the amount becomes $6,000 in 2 years from a principal of $5,000, what is the compound interest percentage?
If the compound interest on a sum for 2 years at 10% per annum is $210, what is the principal?
If the rate of interest is 10% per annum compounded half-yearly, what is the equivalent annual rate?

Try the full quiz and see how many of these you can answer!