Find the compound interest on Rs. 10000 for 1 year at 8% per annum, compounded quarterly. MCQ with Answer and Explanation

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Find the compound interest on Rs. 10000 for 1 year at 8% per annum, compounded quarterly.

A. Rs. 824.32

B. Rs. 850.50

C. Rs. 800.00

D. Rs. 840.00

Answer: Option A

Solution (By JKSSB Mock Tests)

Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 10000 * (1 + 2/100)^4 = 10000 * (1.02)^4 = 10000 * 1.082432 = Rs. 10824.32. Compound Interest = 10824.32 - 10000 = Rs. 824.32.

This question belongs to: Maths Compound Interest

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Question #1

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What is the principal if the amount after 2 years at 10% compound interest is Rs. 12100?

A. Rs. 12000

B. Rs. 11000

C. Rs. 10000

D. Rs. 13000

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Correct Answer: Option C

Explanation:
P = 12100 / (1.1)² = 12100 / 1.21 = 10000.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money invested at compound interest doubles itself in 4 years. In how many years will it become 16 times itself?

A. 20 years

B. 24 years

C. 16 years

D. 12 years

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Correct Answer: Option C

Explanation:
The sum doubles (2^1) in 4 years. It will become 16 (2^4) times in 4 * 4 = 16 years.

This question belongs to: Maths Compound Interest

Question #3

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At what rate percent compound interest will Rs. 1600 amount to Rs. 1852.20 in 3 years?

A. 5%

B. 6%

C. 7%

D. 4%

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Correct Answer: Option A

Explanation:
1600(1+r)³ = 1852.20 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.

This question belongs to: Maths Compound Interest

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