nominal rate of interest is 9.9 p.a.if interest is compounded monthly ,what will be the effective rate of interest?
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Answered by
7
Answer:
right answer-. 10.36 %
Answered by
1
Answer:
Use the formula:
(1+ quoted rate/number of compounding cycles)^ number of compounding cycles - 1
Which means
= (1+ 0.1/2)^2–1
= 1.05^2–1 = 10.36
Step-by-step explanation:
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