Find the effective annual rate of 5 per cent per annum compound interest paid half yearly?

The amount of Rs. 100 in one year at compound interest at 5% per annum payable half yearly.
= Rs. 100(1 + 5/2 /100)²
=Rs. 100(102.5/100)²
=Rs. 100(1.025)²
=Rs. 105.0625
Thus, the nominal rate of 5% payable half yearly has the same effect as the rate of 5.0625 per cent would have, if payable yearly.
Hence 5.0625 per cent is called the effective annual rate 5% per annum payable half yearly.