Question

The effective rate corresponding to 10% p.a. convertible quarterly is? ​

Answer 1

Answer:2.5%

Step-by-step explanation:10÷4=2.5%

Answer 2

Quarterly is 10.38 %

Step-by-step explanation:

According to the questions,

⇒ $\frac{1}{4}\times \frac{10}{100}$

⇒ 0.025

and,

⇒ $(1 + 0.025)^4 - 1$

⇒ $(1.025)^4 - 1$

⇒ $1.10381289 - 1$

⇒ $0.10381289$

⇒ 10.38 %

Quarterly is 10.38 %