Compound Interest | Arithmetic aptitude | Discussion Page

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The effective annual rate of interest corresponding to nominal rate of 6% per annum payable half-yearly is

A) 6.06%

B) 6.07%

C) 6.09%

D) 6.11%

E) 6.10%

Option C

Amount of Rs. $100$ for $1$ yrs when $CI$ half yearly $=\left[100\left(1+\frac{3}{100}\right)^{2}\right]$

$=106.09$

$\therefore$ Effective Rate $=106.09-100$ = 6.09 %

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