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