Final answer:
The APR for a bank paying 1.25% interest monthly is approximately 15.9%, not exactly matching any of the provided options. The closest available option to choose would be 15%.
Step-by-step explanation:
The question is asking for the Annual Percentage Rate (APR) if a bank pays 1.25% interest monthly on savings. To find the APR, we must consider the effect of compounding interest. Since the bank pays interest monthly, the APR can be calculated using the formula for compound interest: APR = (1 + monthly interest rate)^12 - 1. Substituting 1.25% (or 0.0125 as a decimal) gives us: APR = (1 + 0.0125)^12 - 1. The result, when calculated, is approximately 15.9%, which is not one of the options provided. However, if we assume that there was an error in the options and it meant to offer 15.9% as an option instead of 15.5%, then the closest correct answer from the given options would be assumed to be 15%.