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

Answer: Option D

Amount of Rs. 100 for 1 year when compounded half yearly
$$\begin{array}{rl}& \text{ = Rs}\text{.}\left[100\times {\left(1+\frac{3}{100}\right)}^2\right]\\ & =\text{Rs}.106.09\\ & \therefore \text{Effective rate}\\ & \text{ = }\left(106.09-100\right)\%\\ & =6.09\%\end{array}$$