The effective annual rate for 24% 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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In how many years will a sum of Rs. 1600 amount to Rs. 1852.20 at 5% compound interest?
Correct Answer: Option C
Explanation:
1600(1.05)^t = 1852.20 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.
1600(1.05)^t = 1852.20 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.
This question belongs to:
Maths
Compound Interest
Question #2
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In how many years will Rs. 2500 amount to Rs. 3025 at 10% per annum compound interest?
Correct Answer: Option D
Explanation:
2500(1.1)^t = 3025 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.
2500(1.1)^t = 3025 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on a certain sum for 2 years at 4% per annum is Rs. 1632. Find the principal sum.
Correct Answer: Option B
Explanation:
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 1632 => P = 1632 / 0.0816 = Rs. 20000.
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 1632 => P = 1632 / 0.0816 = Rs. 20000.
This question belongs to:
Maths
Compound Interest
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