Answer
1.04% per annum
Explanation
е∧(0.04) = 1.04% per annum
Effective Annual Rate (EAR) is the actual rate since in this case, the interest rate is being compounded on the monthly basis. Using the formula where EAR is calculated by using the mathematical value of 'e' and then putting in the monthly rate as the power of 'e', we are able to achieve the EAR.
