Find the compound interest on Rs. 5000 at 12% per annum for 1 year, compounded half-yearly. MCQ with Answer and Explanation

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Find the compound interest on Rs. 5000 at 12% per annum for 1 year, compounded half-yearly.

A. Rs. 624

B. Rs. 600

C. Rs. 618

D. Rs. 636

Answer: Option C

Solution (By JKSSB Mock Tests)

For half-yearly compounding, New Rate = 12/2 = 6% per half-year, and Time = 2 half-years. Amount = 5000 * (1 + 6/100)^2 = 5000 * 1.1236 = Rs. 5618. Compound Interest = 5618 - 5000 = Rs. 618.

This question belongs to: Maths Compound Interest

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Question #1

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What is the compound interest on Rs. 30000 for 1 year at 16% per annum, compounded half-yearly?

A. Rs. 4992

B. Rs. 5100

C. Rs. 4800

D. Rs. 5200

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Correct Answer: Option A

Explanation:
Half-yearly rate = 16/2 = 8%. Time = 2 half-years. Amount = 30000 * (1 + 8/100)^2 = 30000 * 1.1664 = Rs. 34992. Compound Interest = 34992 - 30000 = Rs. 4992.

This question belongs to: Maths Compound Interest