Effective annual rate of interest corresponding to nominal rate of 6% per annum compounded half yearly will be  Pick:
A) 6.09 % B) 6.10 % C) 6.12 % D) 6.14 % E) none of these

Rationale: explanation : let the amount rs 100 for 1 year when compounded half yearly , n = 2 , rate = 6 / 2 = 3 % amount = 100 ( 1 + 3 / 100 ) 2 = 106.09 effective rate = ( 106.09 - 100 ) % = 6.09 % option a
Answer: A