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: Option D
Solution(By Examveda Team)
$$\eqalign{ & {\text{Half yearly rate}} \cr & {\text{ = }}\frac{6}{2} = 3\% \cr & {\text{Effective rate % }} \cr & {\text{ = 3}} + {\text{3}} + \frac{{3 \times 3}}{{100}} \cr & = 6.09\% \cr} $$This Question Belongs to Arithmetic Ability >> Interest
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I cann't understand Effective rate formula sir pls details.
Effective rate formula sir?