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What is the effective annual rate (EAR) of interest on a certificate of deposit that has a nominal rate of 5.5% with interest compounded quarterly?
What is the effective annual rate (EAR) of interest on a certificate of deposit that has a nominal rate of 5.5% with interest compounded quarterly? Round up to TWO (2) decimal places.
Select one:
A.
5.64%
B.
5.58%
C.
5.50%
D.
5.61%
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