The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is?  Choose the most appropriate option.
A) 6.99%  B) 6.89%  C) 6.08%  D) 6.09%  E) 6.19%
Amount of Rs. 100 for 1 year when compounded half-yearly   = [100 * (1 + 3/100)2]   = Rs. 106.09 Effective rate   = (106.09 - 100)= 
<gadget id="calculator">(106.09 - 100)</gadget>
<output>6.09</output>
6.09%   Answer:6.09%
<result>D</result>
The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is?