A bank pays 8% per annum on a deposit, the interest being compounded quarterly. The effective annual rate of interest is nearest to:

Each quarter earns 8/4 = 2%, so ₹1 grows in a year to $(1.02{)}^4=1.0824$…, an effective rate of about 8.24%. The quoted 8% is only the nominal rate — it is what you would earn if interest were added once a year. Compounding half-yearly would give $(1.04{)}^2=1.0816$, i.e. 8.16%, which is less than quarterly compounding, not the same.