The effective annual rate for 24% per annum compounded half-yearly is: MCQ with Answer and Explanation

Question

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The effective annual rate for 24% per annum compounded half-yearly is:

A. 26%

B. 26.50%

C. 25%

D. 25.44%

Answer: Option D

Solution (By JKSSB Mock Tests)

Half-yearly rate 12%, (1.12)² = 1.2544, effective = 25.44%.

This question belongs to: Maths Compound Interest

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Question #1

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At what rate percent per annum will Rs. 50000 amount to Rs. 54080 in 2 years, compound interest compounded annually?

A. 6%

B. 5%

C. 3%

D. 4%

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Correct Answer: Option D

Explanation:
Amount/Principal = 54080 / 50000 = 5408 / 5000 = 2704 / 2500 = (52 / 50)^2 = (1.04)^2. Therefore, 1 + R/100 = 1.04 => R = 4%.

This question belongs to: Maths Compound Interest

Question #2

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At what rate percent per annum will Rs. 8000 amount to Rs. 8820 in 2 years, compound interest compounded annually?

A. 4%

B. 8%

C. 6%

D. 5%

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Correct Answer: Option D

Explanation:
Amount/Principal = 8820 / 8000 = 882 / 800 = 441 / 400 = (21 / 20)^2. Therefore, 1 + R/100 = 21/20 => R/100 = 1/20 => R = 5%.

This question belongs to: Maths Compound Interest

Question #3

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Find the compound interest on Rs. 10000 for 1 year at 20% per annum, compounded quarterly.

A. Rs. 2200.00

B. Rs. 2000.00

C. Rs. 2155.06

D. Rs. 2250.00

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Correct Answer: Option C

Explanation:
Quarterly rate = 20 / 4 = 5%. Time = 4 quarters. Amount = 10000 * (1 + 5/100)^4 = 10000 * (1.05)^4 = 10000 * 1.21550625 = Rs. 12155.06. Compound Interest = 12155.06 - 10000 = Rs. 2155.06.

This question belongs to: Maths Compound Interest

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