The compound interest on Rs. 12000 for 1 year at 10% per annum compounded half-yearly is: MCQ with Answer and Explanation

The compound interest on Rs. 12000 for 1 year at 10% per annum compounded half-yearly is:

A. Rs. 1230

B. Rs. 1260

C. Rs. 1290

D. Rs. 1200

Answer: Option A

Half-yearly rate = 5%, periods = 2. A = 12000 × (1.05)² = 12000 × 1.1025 = 13230, CI = 13230 − 12000 = Rs. 1230.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

A sum of money becomes 1.44 times in 2 years at compound interest. The rate of interest is:

A. 20%

B. 24%

C. 18%

D. 22%

Correct Answer: Option A

Explanation:
(1+r)² = 1.44 ⇒ 1+r = 1.2 ⇒ r = 20%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

In how many years will Rs. 1600 amount to Rs. 1764 at 5% per annum compound interest?

A. 1.5 years

B. 1 year

C. 2 years

D. 2.5 years

Correct Answer: Option C

Explanation:
1600(1.05)^t = 1764 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money placed at compound interest becomes double of itself in 5 years. In how many years will it become 128 times of itself?

A. 30 years

B. 35 years

C. 45 years

D. 40 years

Correct Answer: Option B

Explanation:
The sum becomes 2^1 times in 5 years. It will become 128 (2^7) times in 7 * 5 = 35 years.

This question belongs to: Maths Compound Interest