The relation between anual interest and semiannual compounded interest is:
[tex]\begin{gathered} \text{annal interest=y, semiannual interest=x} \\ (1+y)=(1+x)^2 \end{gathered}[/tex]In this case, the annula interest is 6%=0.06, so:
[tex]\begin{gathered} 1+0.06=(1+x)^2 \\ 1+x=\sqrt[]{1.06} \\ x=\sqrt[]{1.06}-1=0.02956 \end{gathered}[/tex]So the semiannual interest rate is 2.95%
