(a) 5.5% per annum compounded quarterly
(b) 6.7% per annum compounded annually
(c) 7.5% per annum compounded quarterly
(d) 8.2% per annum compounded half-yearly
Ans.(c)
Sol. The deposits made under the scheme will bear interest at the rate of 7.5% per annum, which will be compounded quarterly, resulting in an effective interest rate of approximately 7.7%.
