The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half yearly is	Choices
A) 6.06 %
B) 6.07 %
C) 6.08 %
D) 6.09 %
E) none

Rationale: "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 d"
Answer: D