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The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half - yearly is = ?

16.06%
26.07%
36.08%
46.09%

Answer:- 1

Explanation:-

Solution:

Amount of Rs 100 for 1 year when compounded half - yearly

\begin{aligned} =  Rs . [100 \times {(1 + \frac{3}{100})}^{2}] \\ = Rs .106 .09 \\ ∴ Effective rate \\ = (106.09 - 100) % \\ = 6.09 % \end{aligned}

$\eqalign{ & {\text{ = Rs}}{\text{.}}\left[ {100 \times {{\left( {1 + \frac{3}{{100}}} \right)}^2}} \right] \cr & = {\text{Rs}}.106.09 \cr & \therefore {\text{Effective rate}} \cr & {\text{ = }}\left( {106.09 - 100} \right)\% \cr & = 6.09\,\% \cr}$

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", "dateCreated": "7/24/2019 10:09:12 AM", "author": { "@type": "Person", "name": "Nitin Sir" } }, "suggestedAnswer": { "@type": "Answer", "text": "

Solution:

Amount of Rs 100 for 1 year when compounded half - yearly

\begin{aligned} =  Rs . [100 \times {(1 + \frac{3}{100})}^{2}] \\ = Rs .106 .09 \\ ∴ Effective rate \\ = (106.09 - 100) % \\ = 6.09 % \end{aligned}

$\eqalign{ & {\text{ = Rs}}{\text{.}}\left[ {100 \times {{\left( {1 + \frac{3}{{100}}} \right)}^2}} \right] \cr & = {\text{Rs}}.106.09 \cr & \therefore {\text{Effective rate}} \cr & {\text{ = }}\left( {106.09 - 100} \right)\% \cr & = 6.09\,\% \cr}$ ", "dateCreated": "7/24/2019 10:09:12 AM" } }

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