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Consumer arithmetic

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aswatha udumalpet [ Scorecard : 90]	Posted On 24 May 2012 at 20:06
	The effective rate of interest corresponding a nominal rate of 7% p.a convertible quarterly is a)7% b)7.5% c)7.10% d)none of these

intermediate(ipc)course no [ Scorecard : 1446]	Posted On 24 May 2012 at 20:25
	E = (1+I)^n - 1 =(1+0.07/4)^4n-1 =(0.2675)^1/44-1 =0.2675 - 1 =0.7 =70% Total thanks : 1 times


Tejaswi Kasturi student-cpt [ Scorecard : 402]	Posted On 24 May 2012 at 21:38
	(1+reff) = (1+r/n)^n 1+reff = (1+ 7/400)^4 = (1.0175)^4 = 1.071859 implies reff = 0.071859 = 7.1859%

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