A bank pays a quoted annual (simple)interest rate of 8 percent.However,it pays interest (compounds)daily using a 365-day year.What is the effective annual rate of return?
A) 7.86%
B) 7.54%
C) 8.57%
D) 8.33%
E) 9.21%

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The Answer of A bank pays a quoted annual (simple)interest rate of 8 percent.However,it pays interest (compounds)daily using a 365-day year.What is the effective annual rate of return?
A) 7.86%
B) 7.54%
C) 8.57%
D) 8.33%
E) 9.21%

A Bank Pays a Quoted Annual (Simple)interest Rate of 8