Practice Questions
Concept Explanation
When interest is compounded quarterly, the annual rate is divided by 4 and periods equal 4T.
Key Formula
A = P(1 + R/400)^(4T)
- Rate per quarter = R/4
- Number of periods = 4T
Example
P = Rs. 10,000, R = 8%, T = 1 year. A = 10000 × (1.02)^4 = Rs. 10,824.32.
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Q1 Easy
Amount on Rs. 10,000 at 8% for 1 year compounded quarterly is:
ExplanationA = 10000 × (1.02)^4 = Rs. 10,824.32, approximately Rs. 10,824. -
Q2 Medium
Amount on Rs. 16,000 at 12% for 1 year (quarterly) is:
ExplanationA = 16000 × (1.03)^4 = Rs. 18,012.45, approximately Rs. 18,012. -
Q3 Medium
Amount on Rs. 8,000 at 8% for 6 months (quarterly) is:
ExplanationA = 8000 × (1.02)^2 = Rs. 8,323.20, approximately Rs. 8,323. -
Q4 Hard
Amount on Rs. 12,000 at 16% for 1 year (quarterly) is:
ExplanationA = 12000 × (1.04)^4 = Rs. 14,021.02, approximately Rs. 14,021. -
Q5 Medium
Amount on Rs. 20,000 at 10% for 1 year (quarterly) is:
ExplanationA = 20000 × (1.025)^4 = Rs. 21,839.82, approximately Rs. 21,840. -
Q6 Hard
Amount on Rs. 5,000 at 12% for 2 years (quarterly) is:
ExplanationA = 5000 × (1.03)^8 = Rs. 6,334.09, approximately Rs. 6,334. -
Q7 Medium
Amount on Rs. 10,000 at 4% for 2 years (quarterly) is:
ExplanationA = 10000 × (1.01)^8 = Rs. 10,829.07, approximately Rs. 10,829.
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Q8 Hard
Amount on Rs. 15,000 at 8% for 9 months (quarterly) is:
ExplanationA = 15000 × (1.02)^3 = Rs. 15,912.24, approximately Rs. 15,912. -
Q9 Medium
Amount on Rs. 10,000 at 20% for 6 months (quarterly) is:
ExplanationA = 10000 × (1.05)^2 = Rs. 11,025. -
Q10 Easy
For quarterly compounding at 8% p.a., rate per quarter is:
ExplanationQuarterly rate = 8/4 = 2% per quarter. -
Q11 Medium
Amount on Rs. 24,000 at 8% for 1 year (quarterly) is:
ExplanationA = 24000 × (1.02)^4 = Rs. 25,978.38, approximately Rs. 25,978. -
Q12 Medium
Amount on Rs. 6,000 at 16% for 1 year (quarterly) is:
ExplanationA = 6000 × (1.04)^4 = Rs. 7,011.51, approximately Rs. 7,012. -
Q13 Hard
Amount on Rs. 10,000 at 8% for 2 years (quarterly) is:
ExplanationA = 10000 × (1.02)^8 = Rs. 11,716.59, approximately Rs. 11,717. -
Q14 Hard
Amount on Rs. 9,000 at 12% for 1.5 years (quarterly) is:
ExplanationA = 9000 × (1.03)^6 = Rs. 10,744.81, approximately Rs. 10,745.
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DS1 Easy
What is the amount (quarterly)?
Statement IP = Rs. 10,000 at 8% for 1 year compounded quarterly.
Statement IICompounding is quarterly.
ExplanationStatement I alone gives amount approximately Rs. 10,824. -
DS2 Medium
What is the amount?
Statement IPrincipal is Rs. 16,000.
Statement IIRate is 12% compounded quarterly for 1 year.
ExplanationNeed P, R and T together. Amount is approximately Rs. 18,012.
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DS3 Easy
How many compounding periods in 2 years?
Statement IInterest is compounded quarterly.
Statement IITime is 2 years.
ExplanationTogether: periods = 4 × 2 = 8. -
DS4 Medium
Is quarterly CI greater than annual CI for 1 year?
Statement IP = Rs. 10,000, R = 8%, T = 1 year, compounded quarterly.
Statement IIRate is 8%.
ExplanationStatement I: quarterly amount Rs. 10,824 > annual amount Rs. 10,800.