Gloria is saving for a new camera lens. She is considering purchasing a one year certificate of deposit with a stated annual rate of 5%. If compounding occurs monthly, how much would Glorias $2,000 grow to by the end of the year? What is the effective annual interest rate?

1. $2,200.00; 5.00%

2. $2,321.51; 6.08%

3. $2,222.68; 4.86%

4. $2,325.50; 6.52%

5. $2,102.32; 5.12%