Aptitude - Compound Interest - Discussion
Discussion Forum : Compound Interest - General Questions (Q.No. 10)
10.
The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
Answer: Option
Explanation:
| Amount of Rs. 100 for 1 year when compounded half-yearly |
 |
= Rs. |  |
100 x |  |
1 + | 3 |  |
2 |  |
= Rs. 106.09 |
| 100 |
Effective rate = (106.09 - 100)% = 6.09%
Discussion:
43 comments Page 2 of 5.
Chadrashekhar said:
1 decade ago
Let p=rs 100
As we know that
for yearly:
A=P(1+R/100)^n
=100(1+6/100)
=Rs.106
for half yearly:
A=p(1+R/2*100)^2n
=100(1+6/2*100)^2*1
=100(103/100*103/100)
=Rs.106.09
Effective rate=(106.09-106)=6.09%
As we know that
for yearly:
A=P(1+R/100)^n
=100(1+6/100)
=Rs.106
for half yearly:
A=p(1+R/2*100)^2n
=100(1+6/2*100)^2*1
=100(103/100*103/100)
=Rs.106.09
Effective rate=(106.09-106)=6.09%
Harsh Chandel said:
1 month ago
Apply AB theoram: a+b + ab/100.
When it's given half-yearly, we can split the rate by 3+3, which is equal to 6.
a + b + ab/100.
= 3 + 3+(3*3)/100.
= 6 + 9/100.
= 609/100.
= 6.09%.
When it's given half-yearly, we can split the rate by 3+3, which is equal to 6.
a + b + ab/100.
= 3 + 3+(3*3)/100.
= 6 + 9/100.
= 609/100.
= 6.09%.
Arman said:
3 years ago
Effective rate = a + b + (ab/100).
When it's given half yearly we can split the rate by 3+3 which is equal to 6.
Here a=3 b=3.
By substituting the values, we will get the answer.
When it's given half yearly we can split the rate by 3+3 which is equal to 6.
Here a=3 b=3.
By substituting the values, we will get the answer.
(16)
RASHMI PODDAR said:
1 decade ago
@Sathya can you please explain me.
What will be the value of n according to this question in the following formula?
Effective rate = ((1+i/n)^n)-1.
What will be the value of n according to this question in the following formula?
Effective rate = ((1+i/n)^n)-1.
Xyz said:
1 decade ago
@Arun.
For half yearly, is in't the formula:
C.I=(P(1+(r/2)/100)^2n-P)? where n=1/2. why have you missed n in the formula? Please explain.
For half yearly, is in't the formula:
C.I=(P(1+(r/2)/100)^2n-P)? where n=1/2. why have you missed n in the formula? Please explain.
XYZ said:
9 years ago
Why n is taken as n=2?
For half yearly formula is:
amt= P+ (1+r/2/100)^ 2N
Considering half yearly, N=1/2 then value of 2N = 2* 1/2=1.
For half yearly formula is:
amt= P+ (1+r/2/100)^ 2N
Considering half yearly, N=1/2 then value of 2N = 2* 1/2=1.
Dhairya said:
9 years ago
Easy method:
Use percentage formula for calculating consecutive profit and discount%.
a + b + (a * b)/100,
3 + 3 + (3 * 3)/100 = 6.09.
Use percentage formula for calculating consecutive profit and discount%.
a + b + (a * b)/100,
3 + 3 + (3 * 3)/100 = 6.09.
(1)
Nitin said:
5 years ago
How can we know that we have to find the compound interest in this question? Anyone, please explain to me to get it.
(3)
Gopi Reddy said:
8 years ago
How to get Rs100(p=100)?
Suppose i am taking Rs200 or 300. I am not getting the answer.
Can you explain it please?
Suppose i am taking Rs200 or 300. I am not getting the answer.
Can you explain it please?
Parvathy said:
1 decade ago
Still got no clue. Somebody please explain in simple context. What this effective rate and annual rate anyway?
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