The effective annual rate for 15% per annum compounded half-yearly is: MCQ with Answer and Explanation

The effective annual rate for 15% per annum compounded half-yearly is:

A. 15.25%

B. 15.50%

C. 15.75%

D. 15.56%

Answer: Option D

Half-yearly rate 7.5%, (1.075)² = 1.155625, effective = 15.5625% ≈ 15.56%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

A sum of money at compound interest doubles in 12 years. In how many years will it become 64 times?

A. 48 years

B. 60 years

C. 72 years

D. 84 years

Correct Answer: Option C

Explanation:
64 = 2⁶, so 12 × 6 = 72 years.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on a sum for 2 years at 9% is Rs. 376.20. The sum is:

A. Rs. 2000

B. Rs. 2400

C. Rs. 2200

D. Rs. 1800

Correct Answer: Option A

Explanation:
CI = P × 0.1881 = 376.20 ⇒ P = 2000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

At what rate percent compound interest will Rs. 1000 become Rs. 1728 in 3 years?

A. 20%

B. 25%

C. 15%

D. 18%

Correct Answer: Option A

Explanation:
1000(1+r)³ = 1728 ⇒ (1+r)³ = 1.728 = (1.2)³ ⇒ r = 20%.

This question belongs to: Maths Compound Interest