What is the conversion period and rate, if a sum is borrowed for $n$ years at the rate of $R %$ p.a.
a) compounded half yearly
b) compounded quarterly

Open in App

Solution

$(a)$ When compounded half-yearly,
rate $= \frac{R %}{2}$
Conversion period $n \times 2 = 2 n$
$(b)$ When compounded quarterly,
rate $= \frac{R %}{4}$
Conversion period $= n \times 4 = 4 n$

Suggest Corrections

Similar questions

Q. What sum invested for 1 and a half years compounded half-yearly at the rate of

4 %

p.a will amount to

1, 32, 651

Q. What sum is invested for

1 \frac{1}{2}

years at the rate of

4

% p.a. compounded half-yearly which amounts to Rs.

1, 32, 651

Q. What sum invested for

1 \frac{1}{2}

years compounded half-yearly at the rate

8 % p . a .

will amount to

R s .140608

A certain sum of money is invested at a certain fixed rate compounded yearly. If the interest accured in two years is 44% of the sum borrowed, find the rate of compound interest.

Q. A man borrowed some money and returned it in 3 equal quarterly installments of Rs 4630.50 each. What sum did he borrow if the rate of interest was 20% p.a. compounded quarterly?

Join BYJU'S Learning Program

What is the conversion period and rate, if a sum is borrowed for n years at the rate of R% p.a. a) compounded half yearly b) compounded quarterly

(a) When compounded half-yearly,rate=R%2Conversion periodn×2=2n(b) When compounded quarterly,rate=R%4Conversion period=n×4=4n

What is the conversion period and rate, if a sum is borrowed for $n$ years at the rate of $R %$ p.a.
a) compounded half yearly
b) compounded quarterly

$(a)$ When compounded half-yearly,
rate $= \frac{R %}{2}$
Conversion period $n \times 2 = 2 n$
$(b)$ When compounded quarterly,
rate $= \frac{R %}{4}$
Conversion period $= n \times 4 = 4 n$