The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable halfyearly is · ABC26GN4184
Subject: General Aptitude · Chapter: Compound Interest · Exam: S.S.C. 2005
The effective annual rate of interest corresponding to a nominal rate of 6\% per annum payable halfyearly is
(a)6.06\%
(b)6.07\%
(c)6.08\%
(d)6.09\%
Answer
Explanation
Amount of ₹ 100 for 1 year when compounded half- $$\text { yearly }=₹\left[100 \times\left(1+\frac{3}{100}\right)^{2}\right]=₹ 106.09 .$$ ∴ Effective rate $=(106.09-100) \%=6.09 \%$.
Explanation as extracted from the printed page; notation may be imperfect.
Study loop for Compound Interest
· Browse this chapter in the app