CUET Preparation Today
The effective rate that is equivalent to a normal rate of 8% compounded semi annually is |
0.08 0.6816 0.0816 0.008 |
0.0816 |
The correct answer is Option (3) → 0.0816 Effective Rate = $\left(1+\frac{r}{n}\right)^n-1$ $=\left(1+\frac{0.08}{2}\right)^2-1$ $=1.0816-1$ $=0.0816$ |
