What is the compound interest on Rs. 20000 for 1 year at 16% 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 16% per annum, compounded half-yearly?

A. Rs. 3328

B. Rs. 3200

C. Rs. 3400

D. Rs. 3500

Answer: Option A

Solution (By JKSSB Mock Tests)

Half-yearly rate = 16/2 = 8%. Time = 2 half-years. Amount = 20000 * (1 + 8/100)^2 = 20000 * 1.1664 = Rs. 23328. Compound Interest = 23328 - 20000 = Rs. 3328.

This question belongs to: Maths Compound Interest

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Question #1

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A sum of money at compound interest quadruples in 2 years. In how many years will it become 16 times?

A. 3 years

B. 5 years

C. 6 years

D. 4 years

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Correct Answer: Option D

Explanation:
16 = 4², so 2 × 2 = 4 years.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money at compound interest becomes 7 times in 3 years. In how many years will it become 343 times?

A. 7 years

B. 8 years

C. 9 years

D. 6 years

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Correct Answer: Option C

Explanation:
343 = 7³, so 3 × 3 = 9 years.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money amounts to Rs. 6690 after 3 years and to Rs. 10035 after 6 years on compound interest. Find the sum.

A. Rs. 4460

B. Rs. 4000

C. Rs. 4500

D. Rs. 4660

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Correct Answer: Option A

Explanation:
Let the principal be P and expansion factor over 3 years be x. P * x = 6690 and P * x^2 = 10035. Therefore, x = 10035 / 6690 = 1.5. Principal P = 6690 / 1.5 = Rs. 4460.

This question belongs to: Maths Compound Interest

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