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Let's assume you open an certificate of deposit, and your Bank promises a rate of 8% APR (Annual Percent Rate). The Bank officer mentions that

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Let's assume you open an certificate of deposit, and your Bank promises a rate of 8% APR (Annual Percent Rate). The Bank officer mentions that the interest will be compounded monthly, What is the Effective Annual Rate (EAR)? Please type the rate as percentage (i.e. 4.2 and not 0.042). Please do not type the % symbol

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