10.The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
A. 6.06% B. 6.07%
C. 6.08% D. 6.09%
Answer: Option D
Explanation:
Amount of Rs. 100 for 1 year
when compounded half-yearly
|
|
= Rs.
|
|
100 x
|
|
1 +
|
3
|
|
2
|
|
= Rs. 106.09
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100
|
Effective rate = (106.09 - 100)% = 6.09%
Title :
Compound Interest Q10
Description : 10.The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is: A. 6.06% ...
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