Find the effective rate of return which is equivalent to a stated rate of 8% compounded quarterly. [Use $(1.02)^4=1.0824)$'

8.24%

The correct answer is option (4) : 8.24%

Here r = 8% p.a, p = 4 quarters

So, effective rate (per rupee) = $(1+\frac{8}{100})^4-1$

$= (1.02)^4-1$

$=1.0824-1= 0.0824$

Hence, the effective rate $=0.0824×100$%

= 8.24%