Your bank pays a quoted annual (nominal)rate of 12%. However, it compounds interest every week (52 times a year). What is the effective annual rate (EAR)?
A)Less than 12%
B)Exactly 12%
C)12.01% - 12.35%
D)12.36% - 12.70%
E)More than 12.70%

Question

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The Answer of Your bank pays a quoted annual (nominal)rate of 12%. However, it compounds interest every week (52 times a year). What is the effective annual rate (EAR)?
A)Less than 12%
B)Exactly 12%
C)12.01% - 12.35%
D)12.36% - 12.70%
E)More than 12.70%

Your Bank Pays a Quoted Annual (Nominal)rate of 12