Find the compound interest on Rs. 4500 at 8% per annum for 1 year compounded half-yearly. MCQ with Answer and Explanation
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Question #1
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The effective annual rate for 15% per annum compounded half-yearly is:
Correct Answer: Option A
Explanation:
Half-yearly rate 7.5%, (1.075)² = 1.155625, effective = 15.5625% ≈ 15.56%.
Half-yearly rate 7.5%, (1.075)² = 1.155625, effective = 15.5625% ≈ 15.56%.
This question belongs to:
Maths
Compound Interest
Question #2
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The simple interest on a sum for 3 years at 5% is Rs. 375. The compound interest on the same sum for 2 years at 5% is:
Correct Answer: Option C
Explanation:
P = 37500/(5×3) = 2500. CI = 2500[(1.05)² − 1] = 2500 × 0.1025 = Rs. 256.25.
P = 37500/(5×3) = 2500. CI = 2500[(1.05)² − 1] = 2500 × 0.1025 = Rs. 256.25.
This question belongs to:
Maths
Compound Interest
Question #3
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At compound interest, if a sum becomes 8 times in 3 years, what is the rate of interest?
Correct Answer: Option B
Explanation:
(1+r)³ = 8 ⇒ 1+r = 2 ⇒ r = 100%.
(1+r)³ = 8 ⇒ 1+r = 2 ⇒ r = 100%.
This question belongs to:
Maths
Compound Interest
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