{"id":1347,"date":"2024-03-05T15:15:50","date_gmt":"2024-03-05T15:15:50","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=1347"},"modified":"2024-03-05T15:15:50","modified_gmt":"2024-03-05T15:15:50","slug":"the-effective-yield-corresponding-to-an-interest-rate-of-12-percent-per-annum-payable-half-yearly-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-effective-yield-corresponding-to-an-interest-rate-of-12-percent-per-annum-payable-half-yearly-will-be\/","title":{"rendered":"The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly will be:"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97468815efa\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    12%                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    12.25%                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    12.36%                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    12.50%                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is (c).<\/p>\n<p>The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly is 12.36%. This is because when interest is compounded, the interest <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> earned on the interest in the first period also earns interest in the second period. This means that the effective yield is always greater than the nominal yield.<\/p>\n<p>To calculate the effective yield, we can use the following formula:<\/p>\n<p>Effective yield = (1 + (Nominal yield \/ Number of compounding periods per year))^Number of compounding periods per year &#8211; 1<\/p>\n<p>In this case, the nominal yield is 12% and the number of compounding periods per year is 2. So, the effective yield is:<\/p>\n<p>Effective yield = (1 + (0.12 \/ 2))^2 &#8211; 1 = 12.36%<\/p>\n<p>The other options are incorrect because they do not take into account the fact that interest is compounded.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[393],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly will be:<\/title>\n<meta name=\"description\" content=\"The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly is 12.36%. This is because when interest is compounded, the interest earned on the interest in the first period also earns interest in the second period. This means that the effective yield is always greater than the nominal yield.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-effective-yield-corresponding-to-an-interest-rate-of-12-percent-per-annum-payable-half-yearly-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly will be:\" \/>\n<meta property=\"og:description\" content=\"The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly is 12.36%. This is because when interest is compounded, the interest earned on the interest in the first period also earns interest in the second period. This means that the effective yield is always greater than the nominal yield.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-effective-yield-corresponding-to-an-interest-rate-of-12-percent-per-annum-payable-half-yearly-will-be\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-05T15:15:50+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly will be:","description":"The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly is 12.36%. This is because when interest is compounded, the interest earned on the interest in the first period also earns interest in the second period. This means that the effective yield is always greater than the nominal yield.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-effective-yield-corresponding-to-an-interest-rate-of-12-percent-per-annum-payable-half-yearly-will-be\/","og_locale":"en_US","og_type":"article","og_title":"The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly will be:","og_description":"The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly is 12.36%. This is because when interest is compounded, the interest earned on the interest in the first period also earns interest in the second period. This means that the effective yield is always greater than the nominal yield.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-effective-yield-corresponding-to-an-interest-rate-of-12-percent-per-annum-payable-half-yearly-will-be\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-03-05T15:15:50+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-effective-yield-corresponding-to-an-interest-rate-of-12-percent-per-annum-payable-half-yearly-will-be\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-effective-yield-corresponding-to-an-interest-rate-of-12-percent-per-annum-payable-half-yearly-will-be\/","name":"The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly will be:","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-03-05T15:15:50+00:00","dateModified":"2024-03-05T15:15:50+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly is 12.36%. This is because when interest is compounded, the interest earned on the interest in the first period also earns interest in the second period. 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