The effective rate of interest for 6% per annum compounded half-yearly is: MCQ with Answer and Explanation
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Question #1
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Find the amount on Rs. 6250 at 8% per annum compound interest for 2 years.
Correct Answer: Option B
Explanation:
A = 6250 × (1.08)² = 6250 × 1.1664 = 7290.
A = 6250 × (1.08)² = 6250 × 1.1664 = 7290.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money at compound interest amounts to Rs. 18150 in 2 years and Rs. 19965 in 3 years. Find the sum.
Correct Answer: Option C
Explanation:
Rate = (19965/18150 − 1) × 100 = 10%. P = 18150 / 1.21 = 15000.
Rate = (19965/18150 − 1) × 100 = 10%. P = 18150 / 1.21 = 15000.
This question belongs to:
Maths
Compound Interest
Question #3
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The effective rate of interest for 5% per annum compounded half-yearly is:
Correct Answer: Option B
Explanation:
Effective rate = (1.025)² − 1 = 1.050625 − 1 = 5.0625%.
Effective rate = (1.025)² − 1 = 1.050625 − 1 = 5.0625%.
This question belongs to:
Maths
Compound Interest
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