The compound interest on Rs. 20000 at 8% per annum for 1 year compounded half-yearly is: MCQ with Answer and Explanation

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The compound interest on Rs. 20000 at 8% per annum for 1 year compounded half-yearly is:

A. Rs. 1632

B. Rs. 1600

C. Rs. 1664

D. Rs. 1680

Answer: Option A

Solution (By JKSSB Mock Tests)

Half-yearly rate 4%, n=2. A = 20000 × (1.04)² = 20000 × 1.0816 = 21632, CI = 21632 − 20000 = Rs. 1632.

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 20% per annum is Rs. 640. Find the sum.

A. Rs. 5500

B. Rs. 4500

C. Rs. 5000

D. Rs. 6000

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Correct Answer: Option C

Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 640 = P * (20/100)^2 * (3 + 20/100) => 640 = P * (1/25) * (3.2) => 640 = P * 0.128 => P = 640 / 0.128 = Rs. 5000.

This question belongs to: Maths Compound Interest

Question #2

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What is the compound interest on Rs. 20000 for 2 years if the rate of interest is 5% for the first year and 10% for the second year?

A. Rs. 3300

B. Rs. 3200

C. Rs. 3100

D. Rs. 3000

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Correct Answer: Option C

Explanation:
Amount = 20000 * (1 + 5/100) * (1 + 10/100) = 20000 * 1.05 * 1.10 = 20000 * 1.155 = Rs. 22100. Compound Interest = 22100 - 20000 = Rs. 2100.

This question belongs to: Maths Compound Interest