The compound interest on Rs. 500 for 2 years at 4% per annum is: MCQ with Answer and Explanation

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The compound interest on Rs. 500 for 2 years at 4% per annum is:

A. Rs. 40.00

B. Rs. 42.40

C. Rs. 40.80

D. Rs. 41.60

Answer: Option C

Solution (By JKSSB Mock Tests)

A = 500 × (1.04)² = 500 × 1.0816 = 540.80, CI = 540.80 − 500 = Rs. 40.80.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1

What is the compound interest on Rs. 80000 for 1 year at 10% per annum, compounded half-yearly?

A. Rs. 8200

B. Rs. 8600

C. Rs. 8400

D. Rs. 8000

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Correct Answer: Option A

Explanation:
Half-yearly rate = 10/2 = 5%. Time = 2 half-years. Amount = 80000 * (1 + 5/100)^2 = 80000 * 1.1225 = Rs. 88200. Compound Interest = 88200 - 80000 = Rs. 8200.

This question belongs to: Maths Compound Interest

Question #2

Find the compound interest on Rs. 2000 at 10% per annum for 1.5 years compounded half-yearly.

A. Rs. 315.25

B. Rs. 330

C. Rs. 300

D. Rs. 350

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Correct Answer: Option A

Explanation:
Half-yearly rate 5%, n=3. A = 2000 × (1.05)³ = 2000 × 1.157625 = 2315.25, CI = 2315.25 − 2000 = Rs. 315.25.

This question belongs to: Maths Compound Interest

Question #3

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. 979.20

D. Rs. 988.80

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Correct Answer: Option C

Explanation:
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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