What is the compound interest on Rs. 10000 for 1 year at 8% per annum, compounded quarterly? MCQ with Answer and Explanation

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What is the compound interest on Rs. 10000 for 1 year at 8% per annum, compounded quarterly?

A. Rs. 841.60

B. Rs. 824.32

C. Rs. 832.00

D. Rs. 800.00

Answer: Option B

Solution (By JKSSB Mock Tests)

Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 10000 * (1 + 2/100)^4 = 10000 * (1.02)^4 = 10000 * 1.082432 = Rs. 10824.32. Compound Interest = 10824.32 - 10000 = Rs. 824.32.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1

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In what time will Rs. 5000 amount to Rs. 6050 at 10% per annum compound interest?

A. 4 years

B. 2 years

C. 3 years

D. 1 year

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Correct Answer: Option B

Explanation:
5000(1.1)^t = 6050 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #2

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The compound interest on a certain sum for 2 years at 12% per annum is Rs. 1272. Find the principal sum.

A. Rs. 4800

B. Rs. 5200

C. Rs. 5400

D. Rs. 5000

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Correct Answer: Option D

Explanation:
Effective rate of compound interest for 2 years at 12% = 12 + 12 + (1212)/100 = 25.44%. Given 25.44% of P = 1272 => P = 1272 / 0.2544 = Rs. 5000.

This question belongs to: Maths Compound Interest