Aptitude - Compound Interest - Discussion

Discussion Forum : Compound Interest - General Questions (Q.No. 10)

Compound Interest

10.

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

6.06%

6.07%

6.08%

6.09%

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.

Povizha said: 7 years ago

What is effective rate?

Vimal said: 1 decade ago

Thanks chandrashekhar.

Surya said: 9 years ago

Thanks @Dhairya.

Post your comments here:

Quick links

Quantitative Aptitude

Verbal (English)

Reasoning

Programming

Interview

Placement Papers