CUET Preparation Today
The effective rate that is equivalent to a nominal rate of 6% compounded semi-annually is : |
4.44% 6.91% 6.09% 5.61% |
6.09% |
The correct answer is Option (3) → 6.09% Effective rate = $\left(1+\frac{r}{m}\right)^m-1$ $=\left(1+\frac{0.06}{2}\right)^2-1$ $=1.0609-1=0.0609$ $=6.09\%$ |
