What is the compound interest on Rs. 40000 for 1 year at 20% per annum, compounded half-yearly? MCQ with Answer and Explanation

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What is the compound interest on Rs. 40000 for 1 year at 20% per annum, compounded half-yearly?

A. Rs. 8000

B. Rs. 8600

C. Rs. 8400

D. Rs. 8800

Answer: Option C

Solution (By JKSSB Mock Tests)

Half-yearly rate = 20/2 = 10%. Time = 2 half-years. Amount = 40000 * (1 + 10/100)^2 = 40000 * 1.21 = Rs. 48400. Compound Interest = 48400 - 40000 = Rs. 8400.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on a sum for 2 years at 5% is Rs. 205. Find the sum.

A. Rs. 2200

B. Rs. 2100

C. Rs. 2000

D. Rs. 1900

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Correct Answer: Option C

Explanation:
CI = P[(1.05)² − 1] = P × 0.1025 = 205 ⇒ P = 2000.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money at compound interest amounts to Rs. 10648 in 3 years and Rs. 11712.80 in 4 years. Find the sum.

A. Rs. 8500

B. Rs. 8000

C. Rs. 7000

D. Rs. 7500

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Correct Answer: Option B

Explanation:
Rate = (11712.80/10648 − 1) × 100 = 10%. P = 10648 / 1.331 = 8000.

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Question #3

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At what rate percent per annum will Rs. 10000 amount to Rs. 11664 in 2 years, compound interest compounded annually?

A. 6%

B. 12%

C. 10%

D. 8%

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Correct Answer: Option D

Explanation:
Amount/Principal = 11664 / 10000. Taking square root: sqrt(11664/10000) = 108 / 100 = 1.08. Therefore, 1 + R/100 = 1.08 => R = 8%.

This question belongs to: Maths Compound Interest

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