Simple & Compound Interest MCQs 2026

45 questions with detailed answers · 16 from past papers · 5 quiz batches available

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Page 1 of 1Questions 1–10 of 45

Q1easy
The Simple Interest on 500 at 4% for 2 years is
1. A20
2. B80
3. C40
4. D100
💡 Explanation:
SI = (500×4×2)/100 = 40.
Q2Past Paper · PPSC/FPSC/NTSeasy
SI stands for
1. AStandard Interest
2. BSimple Interest
3. CSystem Interest
4. DSingle Interest
💡 Explanation:
SI stands for Simple Interest.
Q3Past Paper · PPSC/FPSC/NTSeasy
The formula for Simple Interest is
1. AP × R × T
2. BP + R + T
3. CPR ÷ T
4. D(P × R × T) ÷ 100
💡 Explanation:
Simple Interest = (Principal × Rate × Time) ÷ 100.
Q4easy
In the Simple Interest formula, P stands for
1. APrincipal
2. BPercentage
3. CPeriod
4. DProfit
💡 Explanation:
P stands for Principal, the original sum of money.
Q5easy
In the Simple Interest formula, R stands for
1. ARatio
2. BReturn
3. CRate of interest
4. DReduction
💡 Explanation:
R stands for the Rate of interest, usually per annum.
Q6easy
In the Simple Interest formula, T stands for
1. ATotal
2. BTime
3. CTax
4. DTerm price
💡 Explanation:
T stands for Time, usually measured in years.
Q7Past Paper · PPSC/FPSC/NTSeasy
The Simple Interest on 1000 at 5% for 2 years is
1. A50
2. B200
3. C500
4. D100
💡 Explanation:
SI = (1000×5×2)/100 = 100.
Q8Past Paper · PPSC/FPSC/NTSeasy
The Simple Interest on 2000 at 10% for 1 year is
1. A200
2. B100
3. C400
4. D2200
💡 Explanation:
SI = (2000×10×1)/100 = 200.
Q9easy
The Simple Interest on 1000 at 10% for 3 years is
1. A100
2. B300
3. C200
4. D1300
💡 Explanation:
SI = (1000×10×3)/100 = 300.
Q10medium
The Simple Interest on 1200 at 5% for 2 years is
1. A60
2. B240
3. C100
4. D120
💡 Explanation:
SI = (1200×5×2)/100 = 120.
Q11easy
The Simple Interest on 800 at 5% for 1 year is
1. A40
2. B80
3. C50
4. D400
💡 Explanation:
SI = (800×5×1)/100 = 40.
Q12Past Paper · PPSC/FPSC/NTSeasy
The Amount (A) equals
1. AP − SI
2. BSI − P
3. CP + SI
4. DP × SI
💡 Explanation:
Amount = Principal + Simple Interest.
Q13easy
If P = 1000 and SI = 100, the amount is
1. A900
2. B1100
3. C1000
4. D1010
💡 Explanation:
Amount = 1000 + 100 = 1100.
Q14medium
The Simple Interest on 5000 at 2% for 3 years is
1. A100
2. B200
3. C500
4. D300
💡 Explanation:
SI = (5000×2×3)/100 = 300.
Q15Past Paper · PPSC/FPSC/NTSeasy
CI stands for
1. ACompound Interest
2. BCommon Interest
3. CCentral Interest
4. DCredit Interest
💡 Explanation:
CI stands for Compound Interest.
Q16Past Paper · PPSC/FPSC/NTSmedium
The formula for Amount under compound interest is
1. AP(1 + RT)
2. BP + R + T
3. CP(1 + R/100) raised to power T
4. D(P × R × T)/100
💡 Explanation:
Compound amount A = P(1 + R/100)^T.
Q17Past Paper · PPSC/FPSC/NTSmedium
The Compound Interest on 1000 at 10% for 2 years is
1. A200
2. B210
3. C100
4. D220
💡 Explanation:
A = 1000×(1.1)² = 1210; CI = 1210 − 1000 = 210.
Q18hard
The Compound Interest on 2000 at 5% for 2 years is
1. A200
2. B100
3. C210
4. D205
💡 Explanation:
A = 2000×(1.05)² = 2205; CI = 2205 − 2000 = 205.
Q19Past Paper · PPSC/FPSC/NTSmedium
For 1 year, the compound interest and simple interest are
1. AEqual
2. BAlways double
3. CAlways half
4. DZero
💡 Explanation:
For one year (compounded annually), CI equals SI.
Q20medium
The Compound Interest on 100 at 10% for 2 years is
1. A20
2. B10
3. C21
4. D121
💡 Explanation:
A = 100×(1.1)² = 121; CI = 121 − 100 = 21.
Q21easy
At 10% per annum, the simple interest on 500 for 1 year is
1. A100
2. B50
3. C25
4. D500
💡 Explanation:
SI = (500×10×1)/100 = 50.
Q22easy
The Simple Interest on 600 at 10% for 2 years is
1. A60
2. B600
3. C100
4. D120
💡 Explanation:
SI = (600×10×2)/100 = 120.
Q23easy
The rate of interest is usually expressed
1. APer annum (per year)
2. BPer day
3. CPer second
4. DPer item
💡 Explanation:
Interest rates are usually expressed per annum (per year).
Q24Past Paper · PPSC/FPSC/NTShard
If SI = 100, P = 1000 and T = 2 years, the rate is
1. A10%
2. B2%
3. C5%
4. D20%
💡 Explanation:
R = (SI×100)/(P×T) = (100×100)/(1000×2) = 5%.
Q25Past Paper · PPSC/FPSC/NTShard
If SI = 200, P = 1000 and R = 10%, the time is
1. A1 year
2. B2 years
3. C3 years
4. D4 years
💡 Explanation:
T = (SI×100)/(P×R) = (200×100)/(1000×10) = 2 years.
Q26hard
If SI = 150, R = 5% and T = 3 years, the principal is
1. A500
2. B750
3. C1500
4. D1000
💡 Explanation:
P = (SI×100)/(R×T) = (150×100)/(5×3) = 1000.
Q27Past Paper · PPSC/FPSC/NTSeasy
The interest calculated only on the original principal is called
1. ASimple interest
2. BCompound interest
3. CDiscount
4. DCommission
💡 Explanation:
Simple interest is calculated only on the original principal.
Q28Past Paper · PPSC/FPSC/NTSeasy
The interest calculated on principal plus accumulated interest is called
1. ASimple interest
2. BDiscount
3. CCompound interest
4. DCommission
💡 Explanation:
Compound interest is charged on the principal plus previously earned interest.
Q29easy
The Simple Interest on 2000 at 5% for 2 years is
1. A100
2. B200
3. C250
4. D400
💡 Explanation:
SI = (2000×5×2)/100 = 200.
Q30Past Paper · PPSC/FPSC/NTSmedium
The Amount on 1000 at 10% simple interest for 2 years is
1. A1000
2. B1100
3. C1300
4. D1200
💡 Explanation:
SI = 200; Amount = 1000 + 200 = 1200.
Q31easy
The Simple Interest on 400 at 5% for 3 years is
1. A60
2. B40
3. C20
4. D120
💡 Explanation:
SI = (400×5×3)/100 = 60.
Q32medium
The compound amount on 1000 at 10% for 1 year is
1. A1000
2. B1210
3. C1100
4. D1110
💡 Explanation:
A = 1000×(1.1)¹ = 1100.
Q33easy
The Simple Interest on 1000 at 8% for 1 year is
1. A8
2. B108
3. C100
4. D80
💡 Explanation:
SI = (1000×8×1)/100 = 80.
Q34hard
The Compound Interest on 5000 at 10% for 2 years is
1. A500
2. B1050
3. C1000
4. D550
💡 Explanation:
A = 5000×(1.1)² = 6050; CI = 6050 − 5000 = 1050.
Q35medium
If the principal doubles and rate and time stay the same, the simple interest
1. ADoubles
2. BHalves
3. CStays the same
4. DBecomes zero
💡 Explanation:
SI is directly proportional to principal, so doubling P doubles the SI.
Q36medium
The Simple Interest on 1500 at 4% for 2 years is
1. A60
2. B150
3. C120
4. D240
💡 Explanation:
SI = (1500×4×2)/100 = 120.
Q37medium
In how many years will 1000 give 300 as SI at 10% per annum
1. A1
2. B2
3. C5
4. D3
💡 Explanation:
T = (300×100)/(1000×10) = 3 years.
Q38Past Paper · PPSC/FPSC/NTSmedium
For a period of more than 1 year, compound interest is generally ______ the simple interest
1. ALess than
2. BGreater than
3. CEqual to
4. DHalf of
💡 Explanation:
Because interest earns interest, CI exceeds SI for periods longer than one year.
Q39easy
The Simple Interest on 10000 at 5% for 1 year is
1. A500
2. B5000
3. C1000
4. D50
💡 Explanation:
SI = (10000×5×1)/100 = 500.
Q40medium
The Amount on 2000 at 5% simple interest for 2 years is
1. A2000
2. B2100
3. C2200
4. D2400
💡 Explanation:
SI = 200; Amount = 2000 + 200 = 2200.
Q41medium
The Simple Interest on 250 at 8% for 2 years is
1. A20
2. B25
3. C50
4. D40
💡 Explanation:
SI = (250×8×2)/100 = 40.
Q42Past Paper · PPSC/FPSC/NTShard
At 10% per annum simple interest, in how many years will a sum double
1. A5
2. B10
3. C20
4. D2
💡 Explanation:
To double, interest must equal the principal (100%); 100 ÷ 10 = 10 years.
Q43medium
The Simple Interest on 3000 at 6% for 2 years is
1. A360
2. B180
3. C300
4. D600
💡 Explanation:
SI = (3000×6×2)/100 = 360.
Q44medium
The Compound Interest on 800 at 25% for 1 year equals
1. A100
2. B250
3. C200
4. D25
💡 Explanation:
For one year CI = SI = (800×25×1)/100 = 200.
Q45hard
The principal on which the SI at 5% for 4 years is 200 is
1. A500
2. B800
3. C2000
4. D1000
💡 Explanation:
P = (SI×100)/(R×T) = (200×100)/(5×4) = 1000.

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Simple & Compound Interest MCQs 2026

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