Pariksha SaathiQuantitative Aptitude
Compound Interest: Half-Yearly & Quarterly: Practice Questions with Answers
14 practice questions on Compound Interest: Half-Yearly & Quarterly, with answers; most also have an explanation or a worked solution. Try each one before you open its answer.
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Q.1
Find the amount on ₹10,000 for 6 months at 8% per annum, compounded quarterly.
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Answer: ₹10,404
Solution:
- Quarterly: rate per period = 8/4 = 2%. 6 months = 1/2 year, so number of periods = (1/2) × 4 = 2.
- Amount = 10,000 × (1.02)² = 10,000 × 1.0404 = ₹10,404.
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Q.2
₹10,000 is invested for 1 year at 20% per annum. Compare the compound interest earned if it is compounded annually versus half-yearly.
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Answer: Annual CI = ₹2,000; Half-yearly CI = ₹2,100 (₹100 more)
Solution:
- Annually: Amount = 10,000 × 1.20 = ₹12,000, so CI = ₹2,000.
- Half-yearly: 2 periods at 10% each. Amount = 10,000 × (1.10)² = 10,000 × 1.21 = ₹12,100, so CI = ₹2,100.
- Half-yearly compounding earns ₹100 more, even with the same 20% annual rate — because the first half-year's interest starts earning its own interest in the second half.
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Q.3
A sum, invested at 10% per annum compounded half-yearly, amounts to ₹9,261 after 1.5 years. Find the sum.
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Answer: ₹8,000
Solution:
- Half-yearly: rate per period = 5%, number of periods = 1.5 × 2 = 3. Amount factor = (1.05)³ = 1.157625.
- Principal = Amount / factor = 9,261 / 1.157625 = ₹8,000.
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Q.4
A sum of ₹20,000, compounded quarterly for 6 months, amounts to ₹20,808. Find the annual rate of interest.
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Answer: 8% per annum
Solution:
- Number of periods = (1/2) × 4 = 2. Amount factor = 20,808 / 20,000 = 1.0404.
- 1.0404 = (1.02)², so the rate per period = 2%.
- Annual rate = 2% × 4 = 8%.
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Q.5
Find the compound interest on ₹20,000 for 1 year at 20% per annum, compounded half-yearly.
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Answer: ₹4,200
Solution:
- Half-yearly: rate per period = 20/2 = 10%, number of periods = 1 × 2 = 2.
- Amount = 20,000 × (1.10)² = 20,000 × 1.21 = ₹24,200.
- Compound Interest = 24,200 − 20,000 = ₹4,200.
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Q.6
Find the compound interest on ₹10,000 for 1 year at 10% per annum, compounded half-yearly.
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Answer: ₹1,025
Solution:
- Half-yearly: rate per period = 10/2 = 5%, number of periods = 1 × 2 = 2.
- Amount = 10,000 × (1.05)² = 10,000 × 1.1025 = ₹11,025.
- Compound Interest = 11,025 − 10,000 = ₹1,025.
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Q.7
Find the compound interest on ₹15,000 for 1.5 years at 20% per annum, compounded half-yearly.
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Answer: ₹4,965
Solution:
- Half-yearly: rate per period = 20/2 = 10%. 1.5 years means number of periods = 1.5 × 2 = 3.
- Amount = 15,000 × (1.10)³ = 15,000 × 1.331 = ₹19,965.
- Compound Interest = 19,965 − 15,000 = ₹4,965.
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Q.8
A sum, invested at 20% per annum compounded half-yearly, amounts to ₹24,200 after 1 year. Find the sum.
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Q.9
A sum of ₹12,000, compounded half-yearly for 1 year, amounts to ₹13,230. Find the annual rate of interest.
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Answer: 10% per annum. Factor = 1.1025 = (1.05)², so rate per period = 5%, annual = 10%.
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Q.10
Find the compound interest on ₹12,000 for 1 year at 10% per annum, compounded half-yearly.
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Q.11
₹15,000 is invested for 1 year at 10% per annum. Compare the compound interest if compounded annually versus half-yearly.
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Answer: Annual CI = ₹1,500; Half-yearly CI = ₹1,537.50 (₹37.50 more).
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Q.12
Find the amount on ₹5,000 for 1 year at 40% per annum, compounded half-yearly.
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Answer: ₹7,200. Rate per period = 20%, periods = 2; 5,000 × (1.20)² = 5,000 × 1.44.
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Q.13
Find the amount on ₹20,000 for 6 months at 8% per annum, compounded quarterly.
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Q.14
Find the compound interest on ₹8,000 for 1.5 years at 20% per annum, compounded half-yearly.
How these questions were made
Written by Mahesh Srivastava, Founder of Pariksha Saathi. Published: 2026-10-03.