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

Check All Courses

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.

100 x

1 +
3

2

= Rs. 106.09
100

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

Was this answer helpful ?

Next Question

Submit Comment/FeedBack

More Questions on This Topic :

Question 1. Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How muc....amount will Albert get on maturity of the fixed deposit?

Question 2. 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 3. 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 4. 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 5. The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:....

Question 6. 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 7. What will be compounded amount?....

Question 8. What is the rate of compound interest?....

Question 9. An amount of money was lent for 3 years. What will be the difference between the simple and the compound interest earned....the compound interest earned on it at the same rate?

Question 10. The Compound interest on Rs 16000 for 9 months at 20% P.a compounded quarterly is: ....

Latest Videos

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

Latest Test Papers

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