CUET Preparation Today
The effective rate that is equivalent to a nominal rate of 8% compounded continuously is : (Given that $e^{0.08}=1.0833$) |
8.99% 8.00% 8.33% 8.66% |
8.33% |
The correct answer is Option (3) → 8.33% The effective rate interest is, $r_{eff}=e^r-1$ $r$ → Nominal rate $⇒r_{eff}=e^{0.08}-1$ $≃0.0833$ $≃8.33\%$ |
