- Lessons
- Free
- Quant - Arithmetic
Compound Interest Level - 2
The Compound Interest Level 2 Assessment is a highly rigorous, 50-question exam that tests the ultimate limits of commercial mathematics. It requires deep analytical thinking to solve complex scenarios like fractional years, population depreciation, and the intricate differences between Simple and Compound interest, demanding 60–75 minutes for completion.
Choose Normal practice or a Simulated test.
Questions, answer key and solutions.
- Questions
- 50
- Duration
- 75 min
- Marks
- 50
- Attempts
- 100
- Access
- Free
Negative marking
Normal practice, or a Simulated test
The same questions, either way. Normal practice teaches; the simulated test tells you where you stand.
Normal
UntimedEvery question on one page, loading as you scroll. Choose an option and see straight away whether it was right.
- No timer. Nothing to start and nothing to submit. Stop whenever you like.
- Answered as you choose. Tap an option and it is marked at once, with the correct answer shown.
- Solutions in place. The explanation, and the video where one has been added, sit under the question.
- Open to guests. Normal practice needs no sign-in.
Simulated
Timed CBTThe computer-based test format: one clock, a question palette, and a score the moment you submit.
- A clock that does not pause. 75 minutes from the moment you begin, and the paper is submitted for you when it reaches zero.
- Question palette. Answered, not answered and marked for review, section by section, as the real interface has it.
- Full screen, proctored. The test takes over the screen; leaving it three times submits the paper.
- Answers hidden until you submit. The key, the explanations and your score all arrive together at the end.
About this test
This module is heavy on calculation and algebraic manipulation. It requires candidates to move past basic formulas and utilize advanced shortcuts, tree methods, and effective rate percentages to solve complex multi-step word problems under time pressure.
Target: Designed for top-tier competitive exam preparation, focusing on high-accuracy calculation and identifying the fastest solving method (formula vs. ratio vs. tree method).
Core Syllabus & Question Types:
Difference Between CI and SI: A major focal point of the exam. Utilizing specific shortcut formulas for 2 and 3 years to avoid lengthy calculations:
For 2 years: Difference = P * (R/100)^2
For 3 years: Difference = P * (R/100)^2 * (3 + R/100)
Fractional Time Periods: Calculating CI when the time is not a whole number (e.g., 2 years and 73 days, or 2.5 years). Formula logic: Amount = P * (1 + R/100)^2 * (1 + (R/2)/100) for 2.5 years.
Compound Installments: Calculating the present value or the value of equal annual installments for a loan taken on compound interest. Formula: Loan Amount = X/(1+R/100) + X/(1+R/100)^2 + ... where X is the installment.
Variable Rates & Real-world Models: Problems where the interest rate changes every year (R1 for year 1, R2 for year 2), as well as population growth and machine depreciation models.
Test structure
How the paper is split, and how long each part runs. A section you have finished cannot be returned to.
| Section | Questions | Time |
|---|---|---|
| Compound Interest Level 2 | 50 | 75 min |
Marking & rules
- Total marks
- 50 across 50 questions.
- Negative marking
- A wrong answer costs marks. Leaving a question unanswered costs nothing.
- Attempts
- 100 in total. An attempt is spent the moment you begin one.
What you get when you submit
The analysis is ready the moment you submit the paper.
Score and accuracy
Marks, percentage, right, wrong and skipped, and the time you took.
Section by section
The same figures for each section, so a weak one cannot hide in an average.
The full answer key
Every question with your answer, the right one, the working, and the video where there is one.
Where you stand
Your score against the spread of everyone else who has sat this test.