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CUET · MATHS · PYQ PAPER 2025

The declared rate of return compounded semi annually equivalent to the effective rate of return \(10.25\%\) per annum is :

  1. A \(10.13\%\) p.a.
  2. B \(9.89\%\) p.a.
  3. C \(10 \%\) p.a.
  4. D \(10.05 \%\) p.a.
Verified Solution

Answer & Solution

Correct Answer

(C) \(10 \%\) p.a.

Step-by-step Solution

Detailed explanation

\(EAR = (1 + r/m)^m - 1\) \(0.1025 = (1 + r/2)^2 - 1\) \(1.1025 = (1 + r/2)^2\) \(\sqrt{1.1025} = 1 + r/2\) \(1.05 = 1 + r/2\) \(0.05 = r/2\) \(r = 0.10\) \(10\%\) p.a.
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