Answer:
C
Step-by-step explanation:
The formula for effective annual interest rate is:
[tex]r=(1+\frac{i}{n})^{n}-1[/tex]
where
r is the effective annual interest rate
i is the stated interest rate (here, it is 1.55%, or 0.0155)
n is the number of compounding periods (here, compounded monthly, so it means 12 times a year, so n = 12)
plugging these info into the formula, we get:
[tex]r=(1+\frac{i}{n})^{n}-1\\r=(1+\frac{0.0155}{12})^{12}-1\\r=0.0156[/tex]
0.0156 * 100 = 1.56%
correct answer is C
Answer:
The answer is C
Step-by-step explanation:
i got it right on Plato : ) Brainliest?
