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  1. The effective annual rate of interest, corresponding to a nominal rate of 6% per annum payable half yearly, is :
    1. 6.06%
    2. 6.07%
    3. 6.08%
    4. 6.09%
Correct Option: D

Let the sum be ₹ 100.
For initial six months,

Simple Interest = 100 ×
6
×
6
= 3%
100 12

Now, sum = 100 + 3 = ₹ 103
For another six months,
Simple Interest = 103 ×
6
×
6
= 3.09
100 12

∴ Rate of interest per annum = 3 + 3.09 = 6.09%



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