Question

the effective rate of interest is an amount 25000 is deposited in a bank for one year at value of 6% per annum compunded semi annually is ​

Answer 1

Answer:

Effective Interest Rate = (1 + i/n)^n - 1

= (1+6%/2)^2 - 1

=(1+3%)^2 - 1

= 1.03^2 - 1

= 1.0609 - 1

= 0.0609

= 6.09%