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

6.06%
6.07%
6.08%
6.09%
Explanation:
Amount of Rs. 100 for 1 year
when compounded half-yearly= Rs $\left[100\times\left(1+\dfrac{3}{100}\right)^2\right]$= Rs. 106.09

$\therefore$ Effective rate = (106.09 - 100)% = 6.09%

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