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Model Paper 5 — Applied Maths STD 12 Science — Question

CBSE BoardEnglish MediumSTD 12 ScienceApplied MathsModel Paper 52 Marks
Question
Find the declared rate of return compounded semiannually which is equivalent to $6 \%$ effective rate of return [Use
$
\left.(1.06)^{\frac{1}{2}}=1.0296\right]
$
✓

Answer

Let declared rate of interest be r \% p.a. compounded half yearly.
Given effective rate of return (per rupee) $=\frac{6}{100}=0.06$ (per-rupee), $p =2$ half years.
$
\begin{array}{l}
\therefore 0.06=\left(1+\frac{r}{200}\right)^2-1 \\
\Rightarrow\left(1+\frac{r}{200}\right)^2=1.06 \Rightarrow 1+\frac{r}{200}=(1.06)^{\frac{1}{2}} \\
\Rightarrow 1+\frac{r}{200}=1.0296 \Rightarrow \frac{r}{200}=0.0296 \\
\Rightarrow r=0.0296 \times 200 \Rightarrow r=5.92
\end{array}
$
Hence, the declared rate of return $=5.92 \%$

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