Effective annual rate of interest corresponding to nominal rate of 6% per annum compounded half
yearly will be
Answers.
A) 6.09%
B) 6.10%
C) 6.12%
D) 6.14%
E) None of these
Explanation:   Let the amount Rs 100 for 1 year when compounded half yearly, n = 2, Rate = 6/2= 
<gadget id="calculator">6/2</gadget>
<output>3</output>
3%   6.09%mount=100(1+3100)2=106.09   Effective rate = (106.09 - 100)= 
<gadget id="calculator">(106.09 - 100)</gadget>
<output>6.09</output>
6.09%   6.09%nswer: 6.09%
<result>A</result>
Effective annual rate of interest corresponding to nominal rate of 6% per annum compounded half
yearly will be