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

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

A. Rs. 998.40

B. Rs. 960

C. Rs. 988.80

D. Rs. 979.20

Answer: Option D

Solution (By JKSSB Mock Tests)

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

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Question #1

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What sum will amount to Rs. 14520 in 2 years at 10% per annum compound interest?

A. Rs. 14000

B. Rs. 13000

C. Rs. 11000

D. Rs. 12000

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Correct Answer: Option D

Explanation:
P = 14520 / (1.1)² = 14520 / 1.21 = 12000.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 10000 for 1 year at 12% per annum, compounded quarterly.

A. Rs. 1200.00

B. Rs. 1262.00

C. Rs. 1280.00

D. Rs. 1255.09

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Correct Answer: Option D

Explanation:
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 10000 * (1 + 3/100)^4 = 10000 * (1.03)^4 = 10000 * 1.12550881 = Rs. 11255.09. Compound Interest = 11255.09 - 10000 = Rs. 1255.09.

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Question #3

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The compound interest on a certain sum for 2 years at 4% per annum is Rs. 408. Find the principal sum.

A. Rs. 5200

B. Rs. 5000

C. Rs. 5400

D. Rs. 4800

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Correct Answer: Option B

Explanation:
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 408 => P = 408 / 0.0816 = Rs. 5000.

This question belongs to: Maths Compound Interest

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