Hi. Thank you for posting your question here at Brainly. I hope I would be able to give a good explanation for this answer.
The formula to be used for this problem is
r^n = 1 + i, where i is the annual interest rate
Since the interest rate is compounded monthly, he would make 12 annuities in a year. Thus,
1.005^12 = 1 + i
i = 0.0617 * 100%
i= 6.17%
The annual interest rate is 6.17%.
