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CUET · MATHS · PYQ PAPER 2023

The effective rate that is equivalent to a nominal rate of 16 % compounded semi-annually is :

  1. A 0.1516 %
  2. B 0.1664 %
  3. C 0.1832 %
  4. D 0.2024 %
Verified Solution

Answer & Solution

Correct Answer

(B) 0.1664 %

Step-by-step Solution

Detailed explanation

\( E = (1 + \frac{r}{n})^n - 1 \) \( E = (1 + \frac{0.16}{2})^2 - 1 \) \( E = (1 + 0.08)^2 - 1 \) \( E = (1.08)^2 - 1 \) \( E = 1.1664 - 1 \) \( E = 0.1664 \)
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