You see a bank term deposit quoting 5% per annum compounded monthly. What is the effective...

You see a bank term deposit quoting 5% per annum compounded monthly. What is the effective annual rate (i.e., the EAR)? Round your answer to two decimal places

a. 5.00%

b. 4.58%

c. 5.12%

d.5.42%

e.5.55%

Expert Solution

Ans is c. 5.12%Calculations -Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 2 years ago

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