Question 3 The Wells River Savings Bank is offering a 2 year CD for 1.11% Annual Interest, compounded monthly. What is the Annual Percentage Yield? Enter your answer as a percentage accurate to 2 decimal places. Do not include a percent symbol.

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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.