The effective annual rate for 12% per annum compounded half-yearly is: MCQ with Answer and Explanation

Question

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The effective annual rate for 12% per annum compounded half-yearly is:

A. 12.36%

B. 12.50%

C. 12.25%

D. 12.60%

Answer: Option A

Solution (By JKSSB Mock Tests)

Effective = (1.06)² − 1 = 1.1236 − 1 = 12.36%.

This question belongs to: Maths Compound Interest

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Question #1

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A sum of money at compound interest amounts to Rs. 16105 in 2 years and Rs. 17715.50 in 3 years. Find the sum.

A. Rs. 12500

B. Rs. 12000

C. Rs. 13000

D. Rs. 13310

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Correct Answer: Option D

Explanation:
Rate = (17715.50/16105 − 1) × 100 = 10%. P = 16105 / 1.21 = 13310? 16105/1.21 = 13310 exactly. So answer D 13310.

This question belongs to: Maths Compound Interest

Question #2

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The difference between CI and SI on Rs. 9800 for 2 years at 10% is:

A. Rs. 98

B. Rs. 95

C. Rs. 90

D. Rs. 100

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Correct Answer: Option A

Explanation:
D = 9800 × 0.01 = Rs. 98.

This question belongs to: Maths Compound Interest

Question #3

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The compound interest on a certain sum for 2 years at 12% per annum is Rs. 1272. Find the principal sum.

A. Rs. 5200

B. Rs. 5000

C. Rs. 5400

D. Rs. 4800

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Correct Answer: Option B

Explanation:
Effective rate of compound interest for 2 years at 12% = 12 + 12 + (1212)/100 = 25.44%. Given 25.44% of P = 1272 => P = 1272 / 0.2544 = Rs. 5000.

This question belongs to: Maths Compound Interest

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