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Calculate effective interest rate for term certificate

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Question - Mr. Naveed wants to invest Rs.8 million for 3 years and he has following options:

1. Fixed deposit @ 11% annual compounding

2. Term Certificate @ 9% semi-annual compounding

3. Saving Scheme @ 10% quarterly compounding

Required -

A. Which investment would he prefer?

B. Calculate effective interest rate for Term Certificate.

Reference no: EM132547596

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