Compound Interest Practice Test 4

Question : 39 of 40

Marks: +1, -0

The effective rate of interest corresponding to a nominal rate of 15% p.a. payable at half-yearly is:

Solution:

Let the sum of Rs 100 compounded half yearly

⇒100(1+15/{2×100})^2

=100×215/200×215/200≈115.57

So, rate of interest = 15.57%

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