Compound Interest - General Aptitude

Q1:

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%

ANS:D - 6.09%

Amount of Rs. 100 for 1 year
when compounded half-yearly
= Rs. 100 x 1 + 3 2 = Rs. 106.09
100
 Effective rate = (106.09 - 100)% = 6.09%