1.

The Effective Annual Rate Of Interest Corresponding To A Nominal Rate Of 6% Per Annum Payable Half-yearly Is?

Answer»

Amount of Rs. 100 for 1 YEAR

when COMPOUNDED half-yearly = Rs.[100*(1+3/100)^2]=Rs.106.09

EFFECTIVE rate=(106.09-100)%=6.09%.

Amount of Rs. 100 for 1 year

when compounded half-yearly = Rs.[100*(1+3/100)^2]=Rs.106.09

Effective rate=(106.09-100)%=6.09%.



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