Answer:
C
Step-by-step explanation:
The formula for effective annual interest rate is:
where
r is the effective annual interest rate
i is the stated interest rate (here, it is 1.55%, or 0.0155)
n is the number of compounding periods (here, compounded monthly, so it means 12 times a year, so n = 12)
<em>plugging these info into the formula, we get:</em>
<em></em>
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<em>0.0156 * 100 = 1.56%</em>
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<em>correct answer is C</em>