On the urging of one of the banks managers, Sammy P$,$ the bank is thinking about introducing a new account which pays monthly compound interest with a yearly interest rate of $15\%.$

a$)$Calculate the AER.

Note: Unless explicitly stated otherwise, AER refers to the annual percentage rate before taxes or gross AER!

b$)$ Sunny Farm Ltd$.$ points out that to satisfy legal requirements, Sunny Bank needs to report the net interest rate and the AER net of taxes. Calculate those when each individual interest

payment is immediately taxed at

$20\%.$