The effective annual rate for 12% per annum compounded half-yearly is: MCQ with Answer and Explanation
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Question #1
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What is the compound interest on Rs. 30000 for 1 year at 10% per annum, compounded half-yearly?
Correct Answer: Option B
Explanation:
Half-yearly rate = 10/2 = 5%. Time = 2 half-years. Amount = 30000 * (1 + 5/100)^2 = 30000 * 1.1225 = Rs. 33075. Compound Interest = 33075 - 30000 = Rs. 3075.
Half-yearly rate = 10/2 = 5%. Time = 2 half-years. Amount = 30000 * (1 + 5/100)^2 = 30000 * 1.1225 = Rs. 33075. Compound Interest = 33075 - 30000 = Rs. 3075.
This question belongs to:
Maths
Compound Interest
Question #2
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What sum will amount to Rs. 8820 in 2 years at 5% compound interest?
Correct Answer: Option D
Explanation:
P = 8820 / 1.1025 = 8000.
P = 8820 / 1.1025 = 8000.
This question belongs to:
Maths
Compound Interest
Question #3
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In how many years will Rs. 1200 amount to Rs. 1323 at 5% per annum compound interest?
Correct Answer: Option D
Explanation:
1200(1.05)^t = 1323 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.
1200(1.05)^t = 1323 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.
This question belongs to:
Maths
Compound Interest
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