The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half yearly is:_______?

A. Rs 6.06%
B. Rs 6.07%
C. Rs 6.08%
D. Rs 6.09%
Explanation:
Let the sum be Rs 100.
Then P = Rs 100, R = 3 %
per half – year, t = 2 half – years
Amount = Rs [100 × (1 + 3/100)2]
= Rs (100 × 103/100 × 103/100)
= Rs 10609/100 = Rs 106.09
Effective Annual Rate = 6.09%