Which of the following is the correct expression for the effective annual rate (EAR)?

Select one:

a. (1 / Periodic rate of interest)number of borrowing (interest) periods in one year - 1

b. (1 + Periodic rate of interest)number of borrowing (interest) periods in one year - 1

c. (1 - Periodic rate of interest)number of borrowing (interest) periods in one year - 1

d. (1 + Periodic rate of interest)number of borrowing (interest) periods in one year + 1

e. (1 - Periodic rate of interest)number of borrowing (interest) periods in one year + 1