The effective rate of interest for 4% per annum compounded half-yearly is: MCQ with Answer and Explanation

Question

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The effective rate of interest for 4% per annum compounded half-yearly is:

A. 4.04%

B. 4.16%

C. 4.08%

D. 4.20%

Answer: Option A

Solution (By JKSSB Mock Tests)

Effective = (1.02)² − 1 = 1.0404 − 1 = 4.04%.

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. 4%

B. 6%

C. 5%

D. 3%

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Correct Answer: Option A

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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A sum becomes Rs. 6615 in 2 years and Rs. 6945.75 in 3 years at compound interest. Find the sum.

A. Rs. 6000

B. Rs. 6400

C. Rs. 5800

D. Rs. 6200

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Correct Answer: Option A

Explanation:
Rate = (6945.75/6615 − 1) × 100 = 5%. P = 6615 / (1.05)² = 6615 / 1.1025 = 6000.

This question belongs to: Maths Compound Interest

Question #3

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Find the amount on Rs. 6000 at 8% per annum compound interest for 3 years.

A. Rs. 7560

B. Rs. 7600

C. Rs. 7580

D. Rs. 7558.27

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Correct Answer: Option D

Explanation:
A = 6000 × (1.08)³ = 6000 × 1.259712 = 7558.272.

This question belongs to: Maths Compound Interest

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