Bill Deposits $100 to His Savings Account Biweekly

Multiple Choice

Bill deposits $100 to his savings account biweekly. His savings account pays a nominal interest rate of 5% per year, compounded every six months. What is his savings account's effective interest rate for a 6-month period?

A) 2.1%
B) 2.5%
C) 3.2%
D) 4.2%
E) 5.1%