For an investment, if the nominal rate o

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Target Exam

CUET

Subject

-- Mathematics - Section B2

Chapter

Financial Mathematics

Question:

For an investment, if the nominal rate of interest is 10% compounded half yearly, then the effective rate of interest is:

Options:

10.25%

11.25%

10.125%

11.025%

Correct Answer:

10.25%

Explanation:

The correct answer is Option (1) → 10.25%