Question
The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is :
Answer: Option D
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Amount of Rs. 100 for 1 year when compounded half -yearly.
= Rs. `[100 xx (1 + 3/100)^2]` = Rs. 106.09
`:.` Effective rate = (106.09 - 100)% = 6.09%
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