Question

Calculate the effective annual interest rate if the annual interest rate, i, is 9%.

A. 0.0855
B. 0.0900
C. 0.0938
D. 0.0959

Answer 1

B. ) Unless you're missing some data.

Answer 2

Hi there

(1+0.09÷12)^(12)−1
=0.0938

Hope it helps