Question

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%

Answer: (d).6.09%

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

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