1 $2,000 is invested in an account for 3 years. The balance at the end of year 3. If the interest rate is 12% per year compounded monthly, will be closest to: $2,560 40 $2,760 131 $2,450.20 $2,860 2 The effective annual interest rate when the interest rate is 12% per year compounded semiannually would be closest to 12% 40 12.36% 11.56% 23 11.90% 11 3 The effective annual interest rate when the interest rate is 12% per year compounded annually would be closest to : 12.68% 40 12.24% 30 12% 2 12.36%