Question

What effective rate is equivalent to a nominal rate of 8% per annum compounded quarterly?

OR

Find the present value of an annuity of ₹1000 payable at the end of each year for 5 years if money is worth 6% compounded annually.

[Given (1.06)^-5 = 0.7473]

Answer 1

So effective rate is 8.24% compounded annually.

OR

Present value of ordinary annuity