The effective rate of interest for 4% per annum compounded half-yearly is: MCQ with Answer and Explanation

The effective rate of interest for 4% per annum compounded half-yearly is:

A. 4.16%

B. 4.20%

C. 4.08%

D. 4.04%

Answer: Option D

Effective = (1.02)² − 1 = 1.0404 − 1 = 4.04%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

At what rate percent per annum will Rs. 30000 amount to Rs. 36300 in 2 years, compound interest compounded annually?

A. 12%

B. 10%

C. 8%

D. 14%

Correct Answer: Option B

Explanation:
Amount/Principal = 36300 / 30000 = 121 / 100 = (11 / 10)^2. Therefore, 1 + R/100 = 11/10 => R/100 = 1/10 => R = 10%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

In how many years will a sum of Rs. 800 become Rs. 926.10 at 5% compound interest?

A. 2 years

B. 3 years

C. 3.5 years

D. 2.5 years

Correct Answer: Option B

Explanation:
800(1.05)^t = 926.10 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #3 Report Error

At what rate percent per annum will Rs. 12500 amount to Rs. 14580 in 2 years, compound interest compounded annually?

A. 10%

B. 8%

C. 6%

D. 12%

Correct Answer: Option B

Explanation:
Amount/Principal = 14580 / 12500 = 1458 / 1250 = 729 / 625 = (27 / 25)^2 = (1.08)^2. Therefore, 1 + R/100 = 1.08 => R = 8%.

This question belongs to: Maths Compound Interest