The effective annual rate of interest corresponding to a nominal rate of 6% per

Question

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

Options:

A . 6.06%

B . 6.07%

C . 6.08%

D . 6.09%

Answer: Option D

Amount of Rs. 100 for 1 year
when compounded half-yearly = \(Rs. \left[100\times\left(1+\frac{3}{100}\right)^{2}\right] = Rs. 106.09\)

So, Effective rate = (106.09 - 100)% = 6.09%

Was this answer helpful ?

Next Question

Question 1. Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 ye....10% per annum. The sum placed on simple interest is:

Question 2. If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the sam....same at the same rate and for the same time?

Question 3. The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:....

Question 4. The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is t....Rs. 96. What is the rate of interest per annum?

Question 5. The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for ....the time at half the rate percent per annum is:

Question 6. If Rs. 750 amounts to Rs. 1000 in 5 years, What will it become in 10 years at S.I? ....

Question 7. Saranya gives 50 times the rent per annum to purchase a plot from L.I.C. Find the rate of interest from the amount paid....

Question 8. The price of a T.V set worth Rs. 20,000 is to be paid in 20 installments of Rs. 1000 each. If the rate of interest be 6....

Question 9. If simple interest on a certain sum of money is Rs. 256 and the rate of interest per annum equals the number of years, ....

Question 10. A sum of Rs. 7700 is to be divided among three brothers Suresh, Bala and Krishnan in such a way that simple interest on....

Chapter 1 - GLOBAL STEEL SCENARIO & INDI Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

Chapter 3.1 : Overview of Finance & Acco Chapter 3 : Finance & Accounts SAIL E0 - GFM 2024

Chapter 2.1 : Overview Chapter 2 : Materials Management SAIL E0 - GFM 2024

Chapter 1.1 : Personnel Functions- An ov Chapter 1 : Personnel Management SAIL E0 - GFM 2024

GPOE / GPA Combined 1 Free CBT Mock Test SAIL E0 2024

CBT Mixed Test 1 GPOE/GPA SAIL E0 2024