A bank offers 8% p.a., compounded quarterly. The effective annual rate is

CA Foundation · Quantitative Aptitude · MTP · September 2026
A bank offers 8% p.a., compounded quarterly. The effective annual rate is
(A) A. 8.16%
(B) B. 8.24%
(C) C. 8.32%
(D) D. 8.40%

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. 8.24%

Topics: Part-A: Business Mathematics

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