The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half yearly is	Pick one:
A) 6.06%	B) 6.07%	C) 6.08%	D) 6.09%	E) None
Solution   Amount of Rs.100 for 1 year when compounded half yearly   = Rs.[100 x (1+3/100)2]   = Rs. 106.09%.   Effective rate	= (106.09 - 100)%   = Rs. 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