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Leona has $5,000 invested at 5.5% compounded semi-annually at her bank. In order to make a comparison with another financial institution, she needs to know

Leona has $5,000 invested at 5.5% compounded semi-annually at her bank. In order to make a comparison with another financial institution, she needs to know the effective interest rate at her bank. What is the effective annual interest rate?

Select one:

a.

6.02%

b.

5.58%

c.

5.99%

d.

6.52%

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