What is the effective annual rate corresponding to a nominal rate of 10% p.a. compounded half-yearly?

Type: MCQ • Marks: 1

A. 1) 10.75%

B. 2) 11.00%

C. 3) 10.25%

D. 4) 10.50%

Explanation

Effective Rate = (1 + 0.05)^2 - 1 = 1.1025 - 1 = 10.25%.

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UP TGT Mathematics

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