The effective annual rate for 20% per annum compounded half-yearly is: MCQ with Answer and Explanation
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Practice More Compound Interest Questions
Question #1
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What sum will amount to Rs. 5832 in 2 years at 8% per annum compound interest?
Correct Answer: Option A
Explanation:
P = 5832 / (1.08)² = 5832 / 1.1664 = 5000.
P = 5832 / (1.08)² = 5832 / 1.1664 = 5000.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money doubles itself at compound interest in 8 years. In how many years will it become 16 times?
Correct Answer: Option A
Explanation:
2 times in 8 years, 16 = 2⁴, so 8 × 4 = 32 years.
2 times in 8 years, 16 = 2⁴, so 8 × 4 = 32 years.
This question belongs to:
Maths
Compound Interest
Question #3
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The simple interest on a certain sum for 2 years at 5% is Rs. 200. The compound interest on the same sum for the same period and rate is:
Correct Answer: Option A
Explanation:
SI = P × 5 × 2/100 = 0.1P = 200 ⇒ P = 2000. CI = P[(1.05)² − 1] = 2000 × 0.1025 = Rs. 205.
SI = P × 5 × 2/100 = 0.1P = 200 ⇒ P = 2000. CI = P[(1.05)² − 1] = 2000 × 0.1025 = Rs. 205.
This question belongs to:
Maths
Compound Interest
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