The effective annual rate for 9% per annum compounded half-yearly is: MCQ with Answer and Explanation
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Question #1
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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
Question #2
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The compound interest on a sum for 2 years at 10% compounded half-yearly is Rs. 4310.12. The sum is:
Correct Answer: Option B
Explanation:
CI = P[(1.05)⁴ − 1] = P × 0.21550625 = 4310.125 ⇒ P = 4310.125 / 0.21550625 = 20000.
CI = P[(1.05)⁴ − 1] = P × 0.21550625 = 4310.125 ⇒ P = 4310.125 / 0.21550625 = 20000.
This question belongs to:
Maths
Compound Interest
Question #3
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A sum of money invested at compound interest doubles itself in 9 years. In how many years will it become 8 times of itself?
Correct Answer: Option A
Explanation:
The sum doubles (2^1) in 9 years. It will become 8 (2^3) times in 3 * 9 = 27 years.
The sum doubles (2^1) in 9 years. It will become 8 (2^3) times in 3 * 9 = 27 years.
This question belongs to:
Maths
Compound Interest
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