Question

The effective rate of interest corresponding to a nominal rate 3% pa paya
Corresponding to a nominal rate 3% p.a payable half yearly is
(a) 3.2% p.a (b) 3.25% p.a (e) 3.0225% p. (d) none of these

Answer 1

Answer:

3.0225%

Step-by-step explanation:

3% p.a  

= 3/2 %  Half yearly

= 1.5 %  Half yealy

n = 1 Year = 2 Half Years

A = P ( 1  + r/100)ⁿ

=> P (1 + r/100)¹  =  P(1 + 1.5/100)²

=> 1 + r/100 = 1.015²

=> r/100 = 1.015² - 1

=> r/100 = 2.015 * .015

=> r = 2.015 * 1.5

=> r = 3.0225‬

3.0225%  is the correct answer

Answer 2

Answer:

correct answer is : (e) 3.0225%