Ans) c.10.25%

Effective annual rate = (1+APR/n)^n - 1

APR = 10%

n = no of compounding period = 2

Effective annal rate = (1+10%/2)^2 - 1

=(1+5%)^2 - 1

=1.05^2 - 1

= 1.1025 -1

=0.1025

i.e 10.25%