The effective annual rate for 10% per annum compounded quarterly is: MCQ with Answer and Explanation

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The effective annual rate for 10% per annum compounded quarterly is:

A. 10.50%

B. 10.47%

C. 10.38%

D. 10.25%

Answer: Option C

Solution (By JKSSB Mock Tests)

Quarterly rate 2.5%, (1.025)⁴ = 1.10381289, effective ≈ 10.38%.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1

What is the compound interest on Rs. 2000 for 2 years at 5% per annum compounded annually?

A. Rs. 210

B. Rs. 220

C. Rs. 205

D. Rs. 200

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Correct Answer: Option C

Explanation:
Amount = 2000 × (1.05)² = 2000 × 1.1025 = 2205, CI = 2205 − 2000 = Rs. 205.

This question belongs to: Maths Compound Interest

Question #2

A sum amounts to Rs. 2662 in 3 years at 10% compound interest. The sum is:

A. Rs. 1800

B. Rs. 2200

C. Rs. 2400

D. Rs. 2000

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Correct Answer: Option D

Explanation:
P = 2662 / (1.1)³ = 2662 / 1.331 = 2000.

This question belongs to: Maths Compound Interest

Question #3

The difference between CI and SI on Rs. 1000 for 2 years at 10% is:

A. Rs. 11

B. Rs. 9

C. Rs. 10

D. Rs. 8

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Correct Answer: Option C

Explanation:
D = 1000 × 0.01 = Rs. 10.

This question belongs to: Maths Compound Interest

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