Please enter the following details
Free Daily Targets & Mocks
Study Material & Formulas PDFs
1 on 1 Mentorship
Question 75
On a certain principal, simple interest amounts to Rs. 1,000 in 1 year at the rate of 10% p.a. What will be the effective rate of interest if the same is compounded on half yearly basis?
Solution
R = 10% and R = 5% for half year
Net effective rate in compound interest = $$x+y+\frac{x\times\ y}{100}$$
$$5+5+\frac{5\times\ 5}{100}=10.25$$ %.
Create a FREE account and get:
- Download RRB Study Material PDF
- 45+ RRB previous papers with solutions PDF
- 300+ Online RRB Tests for Free
