Q: If the nominal rate of interest is 12% and is compounded quarterly, the effective rate of interest will be
(a)10·6% per annum
(b)12·6% per annum
(c)14·4% per annum
(d)16·4% per annum
Correct Answer: (b)
The correct answer is (d) '16·4% per annum'. This question from the General Studies domain tests knowledge of Miscellaneous.