effective annual rate of interest corresponding to nominal rate of 6 % per annum compounded half yearly will be
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
subtract(multiply(power(add(divide(divide(6, const_2), const_100), const_1), const_2), const_100), const_100)