Question 12
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The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
- A 6.06%
- B 6.07%
- C 6.08%
- D 6.09% Correct
Correct Answer: Option D
Amount of Rs. 100 for 1 year
when compounded half-yearly
| = Rs. |  |
100 x |  |
1 + | 3 |  |
2 | ![]](/assets/images/aptitude/common/1-sym-cbracket-h2.gif) |
= Rs. 106.09 | ||
| 100 |
∴ Effective rate = (106.09 - 100)% = 6.09%
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