What is the effective rate of interest corresponding to 12% per annum compounded half-yearly? MCQ with Answer and Explanation

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What is the effective rate of interest corresponding to 12% per annum compounded half-yearly?

A. 12.25%

B. 12.60%

C. 12.36%

D. 12.50%

Answer: Option C

Solution (By JKSSB Mock Tests)

Effective rate = (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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The difference between simple interest and compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 100. Find the sum.

A. Rs. 11000

B. Rs. 10000

C. Rs. 12000

D. Rs. 9000

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Correct Answer: Option B

Explanation:
Difference for 2 years = P * (R/100)^2 => 100 = P * (10/100)^2 => 100 = P * 0.01 => P = Rs. 10000.

This question belongs to: Maths Compound Interest

Question #2

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The difference between CI and SI on Rs. 25000 for 2 years at 4% is:

A. Rs. 40

B. Rs. 48

C. Rs. 36

D. Rs. 44

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Correct Answer: Option A

Explanation:
D = 25000 × (0.04)² = 25000 × 0.0016 = Rs. 40.

This question belongs to: Maths Compound Interest

Question #3

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At what rate percent compound interest will Rs. 2700 amount to Rs. 3267 in 2 years?

A. 8%

B. 10%

C. 15%

D. 12%

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Correct Answer: Option B

Explanation:
2700(1+r)² = 3267 ⇒ (1+r)² = 1.21 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

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