Find the compound interest on Rs. 10000 at 10% per annum for 1 year compounded half-yearly. MCQ with Answer and Explanation

Find the compound interest on Rs. 10000 at 10% per annum for 1 year compounded half-yearly.

A. Rs. 1050

B. Rs. 1000

C. Rs. 1100

D. Rs. 1025

Answer: Option D

Half-yearly rate = 5%, n = 2. A = 10000 × (1.05)² = 10000 × 1.1025 = 11025, CI = 11025 − 10000 = Rs. 1025.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

A sum of money invested at compound interest amounts to Rs. 4624 in 2 years and to Rs. 4913 in 3 years. Find the rate of interest per annum.

A. 6%

B. 5%

C. 6.25%

D. 6.5%

Correct Answer: Option C

Explanation:
Interest for the 3rd year = 4913 - 4624 = Rs. 289. Rate of interest = (289 / 4624) * 100 = 0.0625 * 100 = 6.25%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The simple interest on a sum for 2 years at 5% is Rs. 500. The compound interest on the same sum for 2 years at 5% is:

A. Rs. 525

B. Rs. 500

C. Rs. 510

D. Rs. 512.50

Correct Answer: Option D

Explanation:
P = 50000/(5×2) = 5000. CI = 5000[(1.05)² − 1] = 5000 × 0.1025 = Rs. 512.50.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The effective annual rate for 10% per annum compounded quarterly is:

A. 10.50%

B. 10.38%

C. 10.25%

D. 10.47%

Correct Answer: Option B

Explanation:
Quarterly rate 2.5%, (1.025)⁴ = 1.10381289, effective ≈ 10.38%.

This question belongs to: Maths Compound Interest