The compound interest on Rs. 4000 at 10% per annum for 2 years compounded half-yearly is: MCQ with Answer and Explanation

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The compound interest on Rs. 4000 at 10% per annum for 2 years compounded half-yearly is:

A. Rs. 800

B. Rs. 861

C. Rs. 820

D. Rs. 840

Answer: Option B

Solution (By JKSSB Mock Tests)

Half-yearly rate = 5%, n = 4. A = 4000 × (1.05)⁴ = 4000 × 1.21550625 = 4862.025, CI = 862.025 ≈ Rs. 861.

This question belongs to: Maths Compound Interest

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Question #1

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At what rate percent per annum will Rs. 40000 amount to Rs. 48400 in 2 years, compound interest compounded annually?

A. 8%

B. 12%

C. 10%

D. 14%

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Correct Answer: Option C

Explanation:
Amount/Principal = 48400 / 40000 = 121 / 100 = (11 / 10)^2. Therefore, 1 + R/100 = 11/10 => R/100 = 1/10 => R = 10%.

This question belongs to: Maths Compound Interest

Question #2

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The simple interest on a sum for 3 years at 12% is Rs. 432. The compound interest on the same sum for 2 years at 12% is:

A. Rs. 305.28

B. Rs. 300

C. Rs. 303.36

D. Rs. 310

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Correct Answer: Option A

Explanation:
P = 43200/(12×3) = 43200/36 = 1200. CI = 1200[(1.12)² − 1] = 1200 × 0.2544 = 305.28.

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Question #3

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

A. Rs. 4200.00

B. Rs. 4121.61

C. Rs. 4000.00

D. Rs. 4310.20

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Correct Answer: Option B

Explanation:
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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