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A bank offers 12% APR on saving accounts, what is the effective annual rate (EAR) if the interest is compounded monthly? A. 12.68% B. 2.14%

A bank offers 12% APR on saving accounts, what is the effective annual rate (EAR) if the interest is compounded monthly?

A. 12.68%

B. 2.14%

C. 12.00%

D. 1.13%

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