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How to solve these? I don't understand why answer is came out like that. 7. Convert 0.23% monthly periodic rate to an EAR A) 1.03% B) 2.76% C) 2.80% E) 11.99%

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Answer #1
solution:
Effective annual rate (EAR) = ((1+r)^n - 1
r= interest rate per period , n= number of compounding in a year
EAR=((1+0.0023)^12)-1
EAR= 2.80%
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