Your bank account pays a 9.6% nominal rate of interest. The interest is compounded monthly. Which of the following statements is most correct?

Select one:

a. The periodic rate of interest is 9.6% and the effective rate of interest is also 9.6%.b. The periodic rate of interest is 1% and the effective rate of interest is 15%.c. The periodic rate of interest is 9.6% and the effective rate of interest is greater than 9.6%.d. The periodic rate of interest is .8% and the effective rate of interest is greater than 9.6%.e. The periodic rate of interest is 1.6% and the effective rate of interest less than 9.6%.