1.

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

Answer»

Let the sum be Rs 100.

Then P = Rs 100, R = 3 % 

per half – year, t = 2 half – YEARS 

AMOUNT = Rs [100 × (1 + 3/100)2] 

= Rs (100 × 103/100 × 103/100) 

= Rs 10609/100 = Rs 106.09 

Effective Annual RATE = 6.09%.

Let the sum be Rs 100.

Then P = Rs 100, R = 3 % 

per half – year, t = 2 half – years 

Amount = Rs [100 × (1 + 3/100)2] 

= Rs (100 × 103/100 × 103/100) 

= Rs 10609/100 = Rs 106.09 

Effective Annual Rate = 6.09%.



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