Arithmetic Ability
Compound Interest

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Q.

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

View Answer

Correct choice: D

Explanation:

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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