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You are offered a loan with an annual interest rate of 2 % . If this loan is compounded monthly ( 1 2 times a

You are offered a loan with an annual interest rate of 2%. If this loan is compounded monthly (12 times a year), what is the effective annual rate (EAR) of the loan? (Please write in decimal format using 5 decimal places, for example if the answer was 4.234% please write .04234)

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