Question : If the 10 percent per annum rate of compound interest compounded yearly is equivalent to the x percent per annum rate of compound interest compounded half yearly, then what is the value (Approximate) of x?
Option 1: 6.25 percent
Option 2: 5.32 percent
Option 3: 4.88 percent
Option 4: 4.55 percent
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Correct Answer: 4.88 percent
Solution : Annual interest rate = 10% Compounding frequency = half-yearly If x% is compounded half-yearly. Then, By using effective rate = a + b +$\frac{\text{ab}}{100}$, ⇒ Effective rate of interest = x + x + $\frac{\text{x}^2}{100}$ ⇒ Effective rate of interest = 2x + $\frac{\text{x}^2}{100}$ According to the question: ⇒ 10 = 2x + $\frac{\text{x}^2}{100}$ ⇒ 1000 = x(200 + x) ---(1) It is better to use the option method after this. Just put values from options in equation (1). x = 4.88 percent Hence, the correct answer is 4.88 percent.
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Question : Rs. 6000 is lent at the rate of 20% per annum on compound interest (compounded half yearly). What will be the compound interest of 18 months?
Option 1: Rs. 1825
Option 2: Rs. 1986
Option 3: Rs. 1876
Option 4: Rs. 2036
Question : A sum of INR 10,000 was invested at a rate of 10% per annum for 2 years, compounded half-yearly. Find the compound interest.
Option 1: 2,151.0625
Option 2: 2,055
Option 3: 2,255
Option 4: 2,155.0625
Question : Radha deposited INR 1,60,000 at a 10% rate of Compound Interest per annum for two years. If the interest is compounded semi-annually, then what is the Compound Interest (in INR)?
Option 1: 16,400
Option 2: 34,481
Option 3: 74,256
Option 4: 33,600
Question : A person borrowed Rs. 8000 on compound interest at the rate of 20% per annum. If the interest is compounded half-yearly, then what will be the amount to be paid after 1.5 years?
Option 1: Rs. 10,648
Option 2: Rs. 11,488
Option 3: Rs. 10,825
Option 4: Rs. 9,865
Question : Compound interest on a certain sum of money invested for 1.5 years at the rate of 10% per annum, compounded half-yearly is INR 5,044. What is the sum?
Option 1: INR 32,000
Option 2: INR 37,044
Option 3: INR 33,000
Option 4: INR 22,000
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