Discussion

Explanation:

Amount of Rs. 100 for 1 year when compounded every 4 months = Rs

$\left[100\times {\left(1+\frac{{\displaystyle \raisebox{1ex}{$12$}\!\left/ \!\raisebox{-1ex}{$3$}\right.}}{100}\right)}^3\right]=Rs.112.49$

∴ Effective rate = (112.49 - 100)% = 12.49%

Hence, option (b).

» Your doubt will be displayed only after approval.