Question: Serena is just now understanding the difference between the nominal rate and the effective interest rate. At the CIBC, she has $5,000 invested at 5.5%

Serena is just now understanding the difference between the nominal rate and the effective interest rate. At the CIBC, she has $5,000 invested at 5.5% compounded semi-annually. In order to make a comparison with another financial institution, Serena would like to know the effective interest rate at her bank. What is the effective annual interest rate? Select one: a. 5.58% b. 6.52% c. 6.02% d. 5.99%

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