Find the compound interest on Rs. 100000 for 1 year at 16% per annum, compounded quarterly. MCQ with Answer and Explanation

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Find the compound interest on Rs. 100000 for 1 year at 16% per annum, compounded quarterly.

A. Rs. 17500.00

B. Rs. 16000.00

C. Rs. 17200.00

D. Rs. 16985.86

Answer: Option D

Solution (By JKSSB Mock Tests)

Quarterly rate = 16 / 4 = 4%. Time = 4 quarters. Amount = 100000 * (1 + 4/100)^4 = 100000 * (1.04)^4 = 100000 * 1.16985856 = Rs. 116985.86. Compound Interest = 116985.86 - 100000 = Rs. 16985.86.

This question belongs to: Maths Compound Interest

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Question #1

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Find the compound interest on Rs. 12000 at 8% per annum for 1 year compounded half-yearly.

A. Rs. 979.20

B. Rs. 988.80

C. Rs. 960

D. Rs. 998.40

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Correct Answer: Option A

Explanation:
Half-yearly rate 4%, n=2. A = 12000 × (1.04)² = 12000 × 1.0816 = 12979.20, CI = 12979.20 − 12000 = Rs. 979.20.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money placed at compound interest doubles itself in 4 years. In how many years will it amount to 8 times itself?

A. 10 years

B. 16 years

C. 8 years

D. 12 years

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Correct Answer: Option D

Explanation:
2 times in 4 years, 8 = 2³ ⇒ 4 × 3 = 12 years.

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Question #3

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In how many years will Rs. 800 amount to Rs. 882 at 5% per annum compound interest?

A. 1 year

B. 4 years

C. 2 years

D. 3 years

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Correct Answer: Option C

Explanation:
800(1.05)^t = 882 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

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