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

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

A. Rs. 4310.13

B. Rs. 4200.00

C. Rs. 4000.00

D. Rs. 4152.51

Answer: Option D

Solution (By JKExamLibrary)

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

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Compound Interest Questions

Question #1 Report Error

A sum of money at compound interest becomes 2.25 times in 2 years. The rate of interest is:

A. 55%

B. 40%

C. 45%

D. 50%

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
(1+r)² = 2.25 ⇒ 1+r = 1.5 ⇒ r = 50%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The difference between CI and SI on Rs. 9600 for 2 years at 5% is:

A. Rs. 24

B. Rs. 20

C. Rs. 26

D. Rs. 22

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
D = 9600 × 0.0025 = Rs. 24.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on a certain sum for 2 years at 12% per annum is Rs. 1272. Find the principal sum.

A. Rs. 5400

B. Rs. 5000

C. Rs. 4800

D. Rs. 5200

View Answer & Solution Discuss

Correct Answer: Option B

Explanation:
Effective rate of compound interest for 2 years at 12% = 12 + 12 + (1212)/100 = 25.44%. Given 25.44% of P = 1272 => P = 1272 / 0.2544 = Rs. 5000.

This question belongs to: Maths Compound Interest

Explore All Compound Interest MCQs