00:01
Hi, here we need to calculate in which of the following we will get the maximum yield.
00:05
So here, the formula we are going to use is the maximum yield will be calculated as 1 plus i upon n to the power n minus 1.
00:17
So here in our case, for the first one we are given that the value of the rate of interest i equals to 3 .1196 percentage and it is compounded semi -annually.
00:28
So n equals to 2.
00:30
So, substituting the value in the formula, we have 1 plus 0 .0 31196 upon 2 to the power 2 minus 1.
00:39
So here in this case on calculating this value, we have, we will call maximum yield as a as amount a as the value equals to 0 .0343.
00:52
This is equal to 3 .143 percentage.
00:56
Now here, similarly, for the second, part we have i equals to 3 .1184 percentage and it is compounded quarterly so n equals to 4 so amount a equals to 1 plus 0 .0 31184 upon 4 to the power 4 minus 1 so here on calculating this value we have amount a equals to 3 .155 so here this can be written in percentage form as the value increase in the yield will be 3 .155 percentage...