Find the compound interest on Rs. 50000 for 1 year at 12% per annum, compounded quarterly. MCQ with Answer and Explanation

Find the compound interest on Rs. 50000 for 1 year at 12% per annum, compounded quarterly.

A. Rs. 6400.00

B. Rs. 6520.50

C. Rs. 6000.00

D. Rs. 6275.44

Answer: Option D

Solution (By JKExamLibrary)

Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 50000 * (1 + 3/100)^4 = 50000 * (1.03)^4 = 50000 * 1.12550881 = Rs. 56275.44. Compound Interest = 56275.44 - 50000 = Rs. 6275.44.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

A sum of money invested at compound interest doubles itself in 9 years. In how many years will it become 8 times of itself?

A. 36 years

B. 27 years

C. 18 years

D. 45 years

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Correct Answer: Option B

Explanation:
The sum doubles (2^1) in 9 years. It will become 8 (2^3) times in 3 * 9 = 27 years.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on Rs. 5500 at 10% per annum for 2 years is:

A. Rs. 1155

B. Rs. 1210

C. Rs. 1320

D. Rs. 1265

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Correct Answer: Option A

Explanation:
A = 5500 × 1.21 = 6655, CI = 6655 − 5500 = Rs. 1155.

This question belongs to: Maths Compound Interest

Question #3 Report Error

Find the compound interest on Rs. 2000 at 10% per annum for 1.5 years compounded half-yearly.

A. Rs. 315.25

B. Rs. 330

C. Rs. 300

D. Rs. 350

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
Half-yearly rate 5%, n=3. A = 2000 × (1.05)³ = 2000 × 1.157625 = 2315.25, CI = 2315.25 − 2000 = Rs. 315.25.

This question belongs to: Maths Compound Interest

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