Compound Interest - Arithmetic Aptitude Questions and Answers

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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 D

Explanation :

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

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

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