At what rate per annum, compounded half-yearly, will Rs. 32,000 become Rs. 35,280 in 1 year?
Correct answer B. 10%
Explanation
35280/32000 = 1.1025 = (1.05)², i.e. 5% per half-year for 2 periods, so the annual rate is 10%. The nominal annual rate is twice the half-yearly rate.
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