Question:
Given below are two statements:
Statement I: Relation between the nominal rate and effective rate : ref= (1 + 2) * r k +1, where ref = effective rate of interest r = nominal rate of interest k = numbers of conversion periods per year
Statement II: The nominal interest rate is also known as force of interest.
In the light of the above statements, choose the correct answer from the options given below
Given below are two statements:
Statement I: Relation between the nominal rate and effective rate : ref= (1 + 2) * r k +1, where ref = effective rate of interest r = nominal rate of interest k = numbers of conversion periods per year
Statement II: The nominal interest rate is also known as force of interest.
In the light of the above statements, choose the correct answer from the options given below
Statement I: Relation between the nominal rate and effective rate : ref= (1 + 2) * r k +1, where ref = effective rate of interest r = nominal rate of interest k = numbers of conversion periods per year
Statement II: The nominal interest rate is also known as force of interest.
In the light of the above statements, choose the correct answer from the options given below
Updated On: Jun 22, 2024
- Both Statement I and Statement II are true
- Both Statement I and Statement II are false
- Statement I is true but Statement II is false
- Statement I is false but Statement II is true
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
The correct option is (B):Both Statement I and Statement II are false
Was this answer helpful?
0
0
Top Questions on Interest
- At what rate of interest will the present value of a perpetuity of \(₹ 1000\), payable at the end of every quarter be \(₹ 20000\)
- The rate of interest used to discount the bond's cash flow is known as:
- Bank A offers 6% interest rate per annum compounded half yearly. Bank B and Bank C offer simple interest but the annual interest rate offered by Bank C is twice that of Bank B. Raju invests a certain amount in Bank B for a certain period and Rupa invests ₹ 10,000 in Bank C for twice that period. The interest that would accrue to Raju during that period is equal to the interest that would have accrued had he invested the same amount in Bank A for one year. The interest accrued, in INR, to Rupa is
- Anil invests some money at a fixed rate of interest, compounded annually. If the interests accrued during the second and third year are ₹ 806.25 and ₹ 866.72, respectively, the interest accrued, in INR, during the fourth year is nearest to
- Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal is
Questions Asked in CUET PG exam
- In a 400 KV Network, 360 KV is recorded at a 400KV Bus. The reactive power absorbed by stunt reactor rated for 50M VAR. 400KV connected at a BUS is
- CUET (PG) - 2023
- Single and multiple reactions in ideal reactors
- The solution of x partial differential equation
\(\frac{\partial u}{\partial x}=2\frac{\partial u}{\partial t}+U\)
\(U(x,0)=6e^{-3x}\)- CUET (PG) - 2023
- Partial Differential Equations
- For the per capita production function y = k0.5; what is the level of capital per capita at steady state assuming depreciation (δ) = 0.1 and rate of saving = 0.4? The rate of growth of population is assumed as 0.
- CUET (PG) - 2023
- Depreciation, Reserve & Provision
- Find out the degree of the differential equation \(\frac {d^2t}{ds^2}+(\frac {dt}{ds})^2+2t=0\)
- CUET (PG) - 2023
- Differential Equations
- The surface area of the sphere x2 + y2 + z2 = 9 lying inside the cylinder x2 + y2 = 3y is
- CUET (PG) - 2023
- Surface Area of Cube, Cuboid and Cylinder
View More Questions