Question

If the rate of interest is 20% per annum com-
pounded in every 6 months, then what is the
effective rate of interest per annum​

Answer 1

Answer is 6620.14

effective rate of interest = [1+(rate of nominal interest/compounding period)]^compounding period-1

[1+(20/6)]^(6)-1

[1+10/3]^(6)-1

[3/3+10/3]^(6)-1

[13/3]^(6)-1

6621.14-1 = 6620.14