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

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

A. 25.44%

B. 26%

C. 26.50%

D. 25%

Answer: Option A

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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Practice More Compound Interest Questions

Question #1

The compound interest on a sum for 2 years at 6% is Rs. 370.80. The sum is:

A. Rs. 3400

B. Rs. 2800

C. Rs. 3000

D. Rs. 3200

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Correct Answer: Option C

Explanation:
CI = P × 0.1236 = 370.80 ⇒ P = 3000.

This question belongs to: Maths Compound Interest

Question #2

A sum of money at compound interest becomes 4 times in 3 years. In how many years will it become 16 times?

A. 9 years

B. 4 years

C. 6 years

D. 5 years

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Correct Answer: Option C

Explanation:
4² = 16, so 3 × 2 = 6 years.

This question belongs to: Maths Compound Interest

Question #3

The difference between CI and SI on Rs. 2000 for 2 years at 4% per annum is:

A. Rs. 3.20

B. Rs. 4.80

C. Rs. 3.60

D. Rs. 4.00

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Correct Answer: Option A

Explanation:
D = 2000 × (0.04)² = 2000 × 0.0016 = Rs. 3.20.

This question belongs to: Maths Compound Interest

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