Question: A client is confused about two terms on some certificate-of-deposit rates quoted at his bank in the United States. You explain that the stated annual

A client is confused about two terms on some certificate-of-deposit rates quoted at his bank in the United States. You explain that the stated annual interest rate is an annual rate that does not take into account within a year. The rate his bank calls APY (annual percentage yield) is the effective annual rate taking into account The bank's customer service representative mentioned monthly with $1,000 becoming $1,061.68 at the end of a year. To prepare to explain the terms to your client, calculate the stated annual interest rate that the bank must be quoting.

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