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 5 of 5.
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)
Chigga said:
11 months ago
Anyone, please explain to me to get it.
(1)
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%.
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