The effective rate of interest corresponding to a nominal rate 3%p.a payable half yearly is..?
ERI(always take n= 1)
Half yearly R = 3/2=1.5 , n=1*2=2
r =R/100 = 1.5/100= 0.015
ERI = [(1+r)^n-1]*100
= [(1+0.015)^2-1]*100
= [0.030225]*100
= 3.0225
let the effective annual rate be i
1+i = (1 + .015)^2
1+i = 1.030225
i = .030225 or 3.0225%
E=[1+i]^n_1
=1+(3/100)(6/12)^2_1 ,=1.015^2_1 ,=3.0225%
aa 0.15 engane vannu ?
Good but must improve a lot
Amount for 1 yr let us take 100, when u compound it A=100(103/100)^2, you will get 106.09, when you subtract 100 from 106.09 you will get 6.09
Ans: 6.09