Find the compound interest on Rs. 50000 for 1 year at 8% per annum, compounded quarterly. MCQ with Answer and Explanation

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Find the compound interest on Rs. 50000 for 1 year at 8% per annum, compounded quarterly.

A. Rs. 4121.61

B. Rs. 4200.00

C. Rs. 4000.00

D. Rs. 4310.20

Answer: Option A

Solution (By JKSSB Mock Tests)

Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 50000 * (1 + 2/100)^4 = 50000 * (1.02)^4 = 50000 * 1.08243216 = Rs. 54121.61. Compound Interest = 54121.61 - 50000 = Rs. 4121.61.

This question belongs to: Maths Compound Interest

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Question #1

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The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 310. Find the sum.

A. Rs. 12000

B. Rs. 10000

C. Rs. 8000

D. Rs. 15000

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Correct Answer: Option B

Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 310 = P * (10/100)^2 * (3 + 10/100) => 310 = P * (1/100) * (3.1) => P = 310 / 0.031 = Rs. 10000.

This question belongs to: Maths Compound Interest