The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is?  Select the correct option:  A) 8.09%  B) 6.07%  C) 1.09%  D) 6.09%  E) 2.09%
Explanation:   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?