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The effective annual rate of interest corresponding to a nominal rate...

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Interest
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The effective annual rate of interest, corresponding to a nominal rate of 6% per annum payable half yearly is = ?

Answer & Solution
Correct Answer: Option D
$$\eqalign{ & {\text{Half yearly rate}} \cr & {\text{ = }}\frac{6}{2} = 3\% \cr & {\text{Effective rate % }} \cr & {\text{ = 3}} + {\text{3}} + \frac{{3 \times 3}}{{100}} \cr & = 6.09\% \cr} $$
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2 Comments
Ruhany Haque
Ruhany Haque 5 years ago
I cann't understand Effective rate formula sir pls details.
Naseer Marwat
Naseer Marwat 5 years ago
Effective rate formula sir?
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