The compound interest on Rs. 5000 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. 5000 at 8% per annum for 1 year compounded half-yearly is:

A. Rs. 412

B. Rs. 400

C. Rs. 416

D. Rs. 408

Answer: Option D

Solution (By JKSSB Mock Tests)

Rate per half-year = 4%, n = 2. A = 5000 × (1.04)² = 5000 × 1.0816 = 5408, CI = 5408 − 5000 = Rs. 408.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1

The effective annual rate of interest for 12% per annum compounded quarterly is:

A. 12.60%

B. 12.65%

C. 12.55%

D. 12.50%

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Correct Answer: Option C

Explanation:
Quarterly rate = 3%, (1.03)⁴ = 1.12550881, effective ≈ 12.55%.

This question belongs to: Maths Compound Interest

Question #2

A sum of money at compound interest amounts to Rs. 18150 in 2 years and Rs. 19965 in 3 years. Find the sum.

A. Rs. 15000

B. Rs. 17000

C. Rs. 14000

D. Rs. 16000

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Correct Answer: Option A

Explanation:
Rate = (19965/18150 − 1) × 100 = 10%. P = 18150 / 1.21 = 15000.

This question belongs to: Maths Compound Interest

Question #3

At what rate percent per annum will Rs. 8000 amount to Rs. 8820 in 2 years, compound interest compounded annually?

A. 6%

B. 8%

C. 4%

D. 5%

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Correct Answer: Option D

Explanation:
Amount/Principal = 8820 / 8000 = 882 / 800 = 441 / 400 = (21 / 20)^2. Therefore, 1 + R/100 = 21/20 => R/100 = 1/20 => R = 5%.

This question belongs to: Maths Compound Interest

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