Find the compound interest on Rs. 10000 for 1 year at 4% per annum, compounded quarterly. MCQ with Answer and Explanation

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Find the compound interest on Rs. 10000 for 1 year at 4% per annum, compounded quarterly.

A. Rs. 400.00

B. Rs. 412.20

C. Rs. 410.00

D. Rs. 406.04

Answer: Option D

Solution (By JKSSB Mock Tests)

Quarterly rate = 4 / 4 = 1%. Time = 4 quarters. Amount = 10000 * (1 + 1/100)^4 = 10000 * (1.01)^4 = 10000 * 1.04060401 = Rs. 10406.04. Compound Interest = 10406.04 - 10000 = Rs. 406.04.

This question belongs to: Maths Compound Interest

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Question #1

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What is the compound interest on Rs. 10000 for 1 year at 20% per annum, compounded half-yearly?

A. Rs. 2300

B. Rs. 2200

C. Rs. 2000

D. Rs. 2100

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Correct Answer: Option D

Explanation:
Half-yearly rate = 20/2 = 10%. Time = 2 half-years. Amount = 10000 * (1 + 10/100)^2 = 10000 * 1.21 = Rs. 12100. Compound Interest = 12100 - 10000 = Rs. 2100.

This question belongs to: Maths Compound Interest