The effective annual rate for 5% per annum compounded quarterly is: MCQ with Answer and Explanation
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Practice More Compound Interest Questions
Question #1
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The compound interest on Rs. 4300 at 10% per annum for 2 years is:
Correct Answer: Option A
Explanation:
A = 4300 × 1.21 = 5203, CI = 5203 − 4300 = Rs. 903.
A = 4300 × 1.21 = 5203, CI = 5203 − 4300 = Rs. 903.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money at compound interest becomes 3 times in 6 years. In how many years will it become 27 times?
Correct Answer: Option D
Explanation:
3³ = 27, so 6 × 3 = 18 years.
3³ = 27, so 6 × 3 = 18 years.
This question belongs to:
Maths
Compound Interest
Question #3
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At what rate percent compound interest will Rs. 5000 amount to Rs. 5618 in 2 years?
Correct Answer: Option A
Explanation:
5000(1+r)² = 5618 ⇒ (1+r)² = 1.1236 = (1.06)² ⇒ r = 6%.
5000(1+r)² = 5618 ⇒ (1+r)² = 1.1236 = (1.06)² ⇒ r = 6%.
This question belongs to:
Maths
Compound Interest
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