Find the compound interest on Rs. 10000 for 2 years at 4% per annum, the interest being compounded half-yearly. MCQ with Answer and Explanation

Find the compound interest on Rs. 10000 for 2 years at 4% per annum, the interest being compounded half-yearly.

A. Rs. 816.00

B. Rs. 824.32

C. Rs. 832.14

D. Rs. 841.44

Answer: Option B

Solution (By JKExamLibrary)

Half-yearly rate = 4/2 = 2%. Time = 2 years = 4 half-years. Amount = 10000 * (1 + 2/100)^4 = 10000 * (1.02)^4 = 10000 * 1.082432 = Rs. 10824.32. Compound Interest = 10824.32 - 10000 = Rs. 824.32.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

If the compound interest on a sum for 2 years at 10% is Rs. 840, the simple interest on the same sum for 2 years at the same rate is:

A. Rs. 780

B. Rs. 760

C. Rs. 820

D. Rs. 800

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
CI = P[(1.1)² − 1] = 0.21P = 840 ⇒ P = 4000. SI = 4000 × 10 × 2 / 100 = 800.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money amounts to Rs. 12960 in 2 years and Rs. 15552 in 3 years at compound interest. Find the sum.

A. Rs. 8500

B. Rs. 9000

C. Rs. 9500

D. Rs. 8000

View Answer & Solution Discuss

Correct Answer: Option B

Explanation:
Rate = (15552/12960 − 1) × 100 = 20%. P = 12960 / 1.44 = 9000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

What is the principal if the compound interest on it for 2 years at 10% is Rs. 1050?

A. Rs. 5500

B. Rs. 5000

C. Rs. 4500

D. Rs. 6000

View Answer & Solution Discuss

Correct Answer: Option B

Explanation:
CI = P × 0.21 = 1050 ⇒ P = 1050 / 0.21 = 5000.

This question belongs to: Maths Compound Interest

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