The compound interest on Rs. 20000 at 8% per annum for 1 year compounded half-yearly is: MCQ with Answer and Explanation

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The compound interest on Rs. 20000 at 8% per annum for 1 year compounded half-yearly is:

A. Rs. 1600

B. Rs. 1680

C. Rs. 1632

D. Rs. 1664

Answer: Option C

Solution (By JKExamLibrary)

Half-yearly rate 4%, n=2. A = 20000 × (1.04)² = 20000 × 1.0816 = 21632, CI = 21632 − 20000 = Rs. 1632.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

The compound interest on Rs. 8300 at 10% per annum for 2 years is:

A. Rs. 1743

B. Rs. 1660

C. Rs. 1826

D. Rs. 1909

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Correct Answer: Option A

Explanation:
A = 8300 × 1.21 = 10043, CI = 10043 − 8300 = Rs. 1743.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on a sum for 2 years at 10% is Rs. 420. The sum is:

A. Rs. 1900

B. Rs. 2100

C. Rs. 2000

D. Rs. 1800

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Correct Answer: Option C

Explanation:
CI = P[(1.1)² − 1] = 0.21P = 420 ⇒ P = 2000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

What is the compound interest on Rs. 40000 for 1 year at 10% per annum, compounded quarterly?

A. Rs. 4200.00

B. Rs. 4310.13

C. Rs. 4000.00

D. Rs. 4152.51

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Correct Answer: Option D

Explanation:
Quarterly rate = 10/4 = 2.5%. Time = 4 quarters. Amount = 40000 * (1 + 2.5/100)^4 = 40000 * (1.025)^4 = 40000 * 1.10381289 = Rs. 44152.51. Compound Interest = 44152.51 - 40000 = Rs. 4152.51.

This question belongs to: Maths Compound Interest

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