The effective rate of interest for 8% per annum compounded half-yearly is: MCQ with Answer and Explanation
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Question #1
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Find the compound interest on Rs. 10000 for 1 year at 16% per annum, compounded quarterly.
Correct Answer: Option D
Explanation:
Quarterly rate = 16 / 4 = 4%. Time = 4 quarters. Amount = 10000 * (1 + 4/100)^4 = 10000 * (1.04)^4 = 10000 * 1.16985856 = Rs. 11698.59. Compound Interest = 11698.59 - 10000 = Rs. 1698.59.
Quarterly rate = 16 / 4 = 4%. Time = 4 quarters. Amount = 10000 * (1 + 4/100)^4 = 10000 * (1.04)^4 = 10000 * 1.16985856 = Rs. 11698.59. Compound Interest = 11698.59 - 10000 = Rs. 1698.59.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money at compound interest becomes 9 times in 2 years. In how many years will it become 81 times?
Correct Answer: Option A
Explanation:
81 = 9², so 2 × 2 = 4 years.
81 = 9², so 2 × 2 = 4 years.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on Rs. 900 at 10% per annum for 2 years is:
Correct Answer: Option A
Explanation:
A = 900 × (1.1)² = 900 × 1.21 = 1089, CI = 1089 − 900 = Rs. 189.
A = 900 × (1.1)² = 900 × 1.21 = 1089, CI = 1089 − 900 = Rs. 189.
This question belongs to:
Maths
Compound Interest
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