What is the compound interest on Rs. 8000 at 5% per annum for 2 years? MCQ with Answer and Explanation

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What is the compound interest on Rs. 8000 at 5% per annum for 2 years?

A. Rs. 840

B. Rs. 800

C. Rs. 860

D. Rs. 820

Answer: Option D

Solution (By JKSSB Mock Tests)

A = 8000 × (1.05)² = 8000 × 1.1025 = 8820, CI = 8820 − 8000 = Rs. 820.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on a sum for 1 year at 10% per annum compounded half-yearly is Rs. 410. Find the sum.

A. Rs. 4000

B. Rs. 3600

C. Rs. 4200

D. Rs. 3800

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Correct Answer: Option A

Explanation:
CI = P[(1.05)² − 1] = 0.1025P = 410 ⇒ P = 4000.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 100000 for 1 year at 16% per annum, compounded quarterly.

A. Rs. 17500.00

B. Rs. 17200.00

C. Rs. 16985.86

D. Rs. 16000.00

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Correct Answer: Option C

Explanation:
Quarterly rate = 16 / 4 = 4%. Time = 4 quarters. Amount = 100000 * (1 + 4/100)^4 = 100000 * (1.04)^4 = 100000 * 1.16985856 = Rs. 116985.86. Compound Interest = 116985.86 - 100000 = Rs. 16985.86.

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Question #3

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In how many years will Rs. 800 amount to Rs. 882 at 5% per annum compound interest?

A. 2 years

B. 1 year

C. 4 years

D. 3 years

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Correct Answer: Option A

Explanation:
800(1.05)^t = 882 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

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