What is the compound interest on Rs. 20000 for 1 year at 12% per annum, compounded half-yearly? MCQ with Answer and Explanation

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What is the compound interest on Rs. 20000 for 1 year at 12% per annum, compounded half-yearly?

A. Rs. 2600

B. Rs. 2500

C. Rs. 2400

D. Rs. 2472

Answer: Option D

Solution (By JKSSB Mock Tests)

Half-yearly rate = 12/2 = 6%. Time = 2 half-years. Amount = 20000 * (1 + 6/100)^2 = 20000 * 1.1236 = Rs. 22472. Compound Interest = 22472 - 20000 = Rs. 2472.

This question belongs to: Maths Compound Interest

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Question #1

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A sum of money amounts to Rs. 4840 in 2 years and to Rs. 5324 in 3 years at compound interest compounded annually. Find the principal sum.

A. Rs. 4000

B. Rs. 3600

C. Rs. 4200

D. Rs. 4400

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Correct Answer: Option A

Explanation:
Rate of interest = ((5324 - 4840) / 4840) * 100 = (484 / 4840) * 100 = 10%. Principal P = 4840 / (1 + 10/100)^2 = 4840 / 1.21 = Rs. 4000.

This question belongs to: Maths Compound Interest