Given an effective annual rate j₁ = 6.12500%, find the equivalent nominal rate ¡(12). O a. 4.82719% O b. 5.95950% O c. O d. 4.46962% O e. 5.89990% 5.84031% Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 (Quite sure: >80%)

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.