Question

If nominal rate of interest is 12% p.a. and compounding is half yearly then
Effective rate of interest is ?​

Answer 1

Answer:

Now, let's solve for the effective annual rate for 12% compounded monthly. To do this we simply plug in (1+. 01)12 – 1, which equals 12.68%....

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Step-by-step explanation:

Now, let's solve for the effective annual rate for 12% compounded monthly. To do this we simply plug in (1+. 01)12 – 1, which equals 12.68%.