What is the effective annual rate for RST Bank if they offer 2.5% per annum compounded semi-annually for a savings deposit? a. 2.50% b. 2.52% c. 2.51% d. 2.53%

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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What is the effective annual rate for RST Bank if they offer
2.5% per annum compounded semi-annually for a savings
deposit?
a. 2.50%
b. 2.52%
c. 2.51%
d. 2.53%
Transcribed Image Text:What is the effective annual rate for RST Bank if they offer 2.5% per annum compounded semi-annually for a savings deposit? a. 2.50% b. 2.52% c. 2.51% d. 2.53%
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