Economy, asked by basantilata4444, 6 months ago

4: In a particular loan the interest rate per month is 1%
then, the effective rate of interest will be:
2573562887
12%
12.36%
12.84%
12.68%
Save & Next
Save & Back
Skip/Mark For Review​

Answers

Answered by amitnrw
0

Given : In a particular loan the interest rate per month is 1%

To Find :  the effective rate of interest will be:

Solution:

Let say

Principle = P

rate of interest r = 1  % per month

Time = n = 12 months

A = P(1 + r/100)ⁿ

=> A = P ( 1 + 1/100)¹²

=> A = P (1.1268)

Let say effective rate of interest  = R % per annum

P = P

R = ?

n = 1  Year

A = P (1  + R/100)¹   = P ( 1 + R/100)

Equating both

P ( 1 + R/100)  =P (1.1268)

=> 1 + R/100  = 1.1268

=> R/100  = 0.1268

=> R = 12.68

the effective rate of interest will be:  12.68 %

Learn More:

a bank pays 6.25 % interest on monthly recurring deposit scheme ...

https://brainly.in/question/14957455

if nominal rate of interest is 10% per annum and annual effective ...

https://brainly.in/question/21237615

The effective rate of interest corresponding to a nominal rate 3% pa ...

https://brainly.in/question/12975241

Similar questions