Question on Interest Rates with Same period

Course Name: Quant Interview Questions Preparation, Section No: 2, Unit No: 3, Unit type: Quiz



The interest rate of SBI is 7.5% and HDFC is 7% according to the picture!  It appears the book solution is incorrect.  The correct answer is: 45% : 55%



(I know it is not that big of a deal, and you are trying to convey a concept.  Just trying to bring your attention)

Hi Venka,



The following image will help you identify the correct annual interest rate offered by the two banks for a tenure of 1 year,  at the start of the years 2012-2017.





As seen in the above figure, the annual interest rate offered at the start of the year 2014 by SBI & HDFC are 7% and 8% respectively.