Find the compound interest on Rs. 10000 for 1 year at 20% per annum, compounded quarterly. MCQ with Answer and Explanation

Find the compound interest on Rs. 10000 for 1 year at 20% per annum, compounded quarterly.

A. Rs. 2200.00

B. Rs. 2250.00

C. Rs. 2155.06

D. Rs. 2000.00

Answer: Option C

Solution (By JKExamLibrary)

Quarterly rate = 20 / 4 = 5%. Time = 4 quarters. Amount = 10000 * (1 + 5/100)^4 = 10000 * (1.05)^4 = 10000 * 1.21550625 = Rs. 12155.06. Compound Interest = 12155.06 - 10000 = Rs. 2155.06.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

A sum of money placed at compound interest becomes double of itself in 8 years. In how many years will it become 16 times of itself?

A. 24 years

B. 40 years

C. 48 years

D. 32 years

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
The sum becomes 2^1 times in 8 years. It will become 16 (2^4) times in 4 * 8 = 32 years.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The difference between compound interest and simple interest on a sum for 2 years at 8% is Rs. 32. The sum is:

A. Rs. 5500

B. Rs. 4500

C. Rs. 5000

D. Rs. 4000

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Correct Answer: Option C

Explanation:
D = P × (0.08)² = P × 0.0064 = 32 ⇒ P = 5000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on Rs. 3400 at 10% per annum for 2 years is:

A. Rs. 748

B. Rs. 800

C. Rs. 780

D. Rs. 714

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Correct Answer: Option D

Explanation:
A = 3400 × 1.21 = 4114, CI = 4114 − 3400 = Rs. 714.

This question belongs to: Maths Compound Interest

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