The effective annual rate of interest corresponding to a nominal rate of 12% per annum payable every 4 months is:
Explanation:
Amount of Rs. 100 for 1 year when compounded every 4 months = Rs
100×1+1231003=Rs.112.49
∴ Effective rate = (112.49 - 100)% = 12.49%
Hence, option (b).
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