The effective rate of interest for 6% per annum compounded half-yearly is: MCQ with Answer and Explanation

Question

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The effective rate of interest for 6% per annum compounded half-yearly is:

A. 6.15%

B. 6.12%

C. 6.06%

D. 6.09%

Answer: Option D

Solution (By JKSSB Mock Tests)

Effective rate = (1.03)² − 1 = 1.0609 − 1 = 6.09%.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on a certain sum for 2 years at 8% per annum is Rs. 416. Find the principal sum.

A. Rs. 2500

B. Rs. 2600

C. Rs. 2800

D. Rs. 2400

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Correct Answer: Option A

Explanation:
Effective rate of compound interest for 2 years at 8% = 8 + 8 + (88)/100 = 16.64%. Given 16.64% of P = 416 => P = 416 / 0.1664 = Rs. 2500.

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. 8%

B. 6%

C. 4%

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 amount of Rs. 5000 at compound interest for 3 years at 4% per annum.

A. Rs. 5624.32

B. Rs. 5660

C. Rs. 5600

D. Rs. 5648

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Correct Answer: Option A

Explanation:
A = 5000 × (1.04)³ = 5000 × 1.124864 = 5624.32.

This question belongs to: Maths Compound Interest

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