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 3 of 5.
Syamu said:
6 years ago
The given interest is 6%.
According to formulae of compound interest for half-yearly [p (1 + (R/2) /100) ^2].
According to formulae of compound interest for half-yearly [p (1 + (R/2) /100) ^2].
Ayush said:
9 years ago
One yearly compound interest is 100 * (1 + 6/100)^1 = 106.
Then, half yeraly CI = 106.09 how is it possible?
Then, half yeraly CI = 106.09 how is it possible?
Narsimha said:
7 years ago
R=6% for normal 1 year,
R=3% for half yearly,
Effective percentage formula=R+R+(R*R)÷100,
ANS is 6.09.
R=3% for half yearly,
Effective percentage formula=R+R+(R*R)÷100,
ANS is 6.09.
(1)
Shyamlata said:
1 decade ago
@Chandrashekhar Ji, How could u solve the Effective rate?
= 106.09-106 = 6.09%.
Please explain it.
= 106.09-106 = 6.09%.
Please explain it.
Abhishek said:
1 decade ago
For calculating the amount half yearly how can you take n=1. It should be n=1/2 year.
(1)
Jasika said:
1 decade ago
Yeah. How we can find rate by subtracting principal from amount in the form of %?
Sandy said:
9 years ago
See the question it is given as half yearly so we should taken as n = 2.
Hrishi said:
9 years ago
Still not understand why n=2 is taken? Someone, please explain briefly.
Linka said:
8 years ago
How n=1? for half year n=1/2 means 2n=2*1/2 it gives 1 right?
(1)
Sunil said:
8 years ago
@Durga.
There is no 106.09-106.
There's 106.09-100=6.09.
There is no 106.09-106.
There's 106.09-100=6.09.
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers