Find the compound interest on Rs. 50000 for 1 year at 8% per annum, compounded quarterly. MCQ with Answer and Explanation

Find the compound interest on Rs. 50000 for 1 year at 8% per annum, compounded quarterly.

A. Rs. 4121.61

B. Rs. 4000.00

C. Rs. 4200.00

D. Rs. 4310.20

Answer: Option A

Solution (By JKExamLibrary)

Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 50000 * (1 + 2/100)^4 = 50000 * (1.02)^4 = 50000 * 1.08243216 = Rs. 54121.61. Compound Interest = 54121.61 - 50000 = Rs. 4121.61.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

What is the compound interest on Rs. 2000 for 2 years at 5% per annum compounded annually?

A. Rs. 210

B. Rs. 200

C. Rs. 205

D. Rs. 220

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Correct Answer: Option C

Explanation:
Amount = 2000 × (1.05)² = 2000 × 1.1025 = 2205, CI = 2205 − 2000 = Rs. 205.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The simple interest on a sum for 3 years at 10% is Rs. 900. The compound interest on the same sum for 2 years at 10% is:

A. Rs. 660

B. Rs. 600

C. Rs. 690

D. Rs. 630

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Correct Answer: Option D

Explanation:
P = 90000/(10×3) = 3000. CI = 3000 × 0.21 = 630.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money at compound interest becomes 3 times in 5 years. In how many years will it become 9 times?

A. 8 years

B. 10 years

C. 12 years

D. 15 years

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Correct Answer: Option B

Explanation:
3 times in 5 years; 9 = 3² ⇒ 5 × 2 = 10 years.

This question belongs to: Maths Compound Interest

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