The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
Pick one: A) 6.09% B) 6.08% C) 6.1% D) 6.07% E) 6.05%
Amount of Rs. 100 for 1 year when compounded half-yearly   =100 x (1 + 3/100)^2 = 106.09   Therefore Effective rate = (106.09 - 100)= 
<gadget id="calculator">(106.09 - 100)</gadget>
<output>6.09</output>
6.09%   6.09%nswer 6.09%) 6.09%
<result>A</result>
The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is: