The effective annual rate of interest for 10% per annum compounded quarterly is: MCQ with Answer and Explanation
Question
Report Error
Discuss this Question (0)
Practice More Compound Interest Questions
Question #1
Report Error
The compound interest on a sum for 2 years at 8% per annum is Rs. 332.80. Find the sum.
Correct Answer: Option A
Explanation:
CI = P[(1.08)² − 1] = P × 0.1664 = 332.80 ⇒ P = 332.80 / 0.1664 = 2000.
CI = P[(1.08)² − 1] = P × 0.1664 = 332.80 ⇒ P = 332.80 / 0.1664 = 2000.
This question belongs to:
Maths
Compound Interest
Question #2
Report Error
The difference between CI and SI on Rs. 18000 for 2 years at 5% is:
Correct Answer: Option D
Explanation:
D = 18000 × (0.05)² = 18000 × 0.0025 = Rs. 45.
D = 18000 × (0.05)² = 18000 × 0.0025 = Rs. 45.
This question belongs to:
Maths
Compound Interest
Question #3
Report Error
At compound interest, a sum becomes 1.21 times in 2 years. The rate of interest per annum is:
Correct Answer: Option C
Explanation:
(1 + r)² = 1.21 ⇒ 1 + r = 1.1 ⇒ r = 10%.
(1 + r)² = 1.21 ⇒ 1 + r = 1.1 ⇒ r = 10%.
This question belongs to:
Maths
Compound Interest
No comments yet. Be the first to start the discussion!