00:01
Hello students in this question given that nominal rate equals 10 % as per the column in three equivalent nominal rate and here given that compounded semi -annually.
00:26
So we know that the formula for equivalent nominal rate equals 1 plus or by n the whole power n minus 1.
00:45
Into 100%.
00:47
On substituting the known values, then we get 1 plus r is 10 divided by n is 100 into 2.
00:57
That is 10 % so we have to write 10 by 100 and n is semi -annually so we have to consider 2.
01:05
N equals 2 minus 1 into 100%.
01:10
On further simplification we get 10 .25 %.
01:15
And here, this is for 3.
01:19
Next for 6, that is nominal rate equals 6 % compounded monthly.
01:33
That is n equals 12.
01:38
So we get equal a nominal rate equals 1 plus 6 by 12 into 100, the whole power 12 minus 1.
01:55
Into 100%.
01:58
On further simplification, we get the answer as 6 .167781 percentage.
02:07
Next, we need to consider the nominal rate for 12 % that is compounded quarterly.
02:22
So we have to consider n equals 4.
02:27
Similarly, equivalent non - nominal rate equals 1 plus 12 divided by 100 into 4 the whole power 4 minus 1 into 100 percentage...