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A bank offers a savings account that pays interest quarterly with an effective annual rate (EAR) of 14%. What is the applicable quarterly periodic interest

A bank offers a savings account that pays interest quarterly with an effective annual rate (EAR) of 14%. What is the applicable quarterly periodic interest earned in this account?

a.

3.50%

b.

6.77%

c.

13.87%

d.

3.33%

e.

4.46%

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