Numerical - Effective rate of interest with quarterly compounding

Q.  If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:
- Published on 04 Sep 15

a. 10% per annum
b. 10.10% per annum
c. 10.25% per annum
d. 10.38% per annum

ANSWER: 10.38% per annum

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