Final answer:
To find the effective annual rate (EAR) from a nominal annual rate (APR) compounded monthly, the formula EAR = (1 + APR/n)^n - 1 is used. The question seems to ask for the EAR of a 12% rate compounded monthly, but without clear context, it is not possible to determine the exact answer from the provided options.
Step-by-step explanation:
The question asks to find the effective interest rate for 12%(12), which may imply a compounded yearly interest rate of 12%. However, without additional context or clarification regarding the meaning of 12%(12), it is challenging to provide a precise answer. Given the information provided, none of the solutions listed in the given references correspond to converting a nominal annual interest rate into an effective interest rate. Moreover, the reference information does not seem relevant to this specific problem. To find the effective annual rate (EAR) from a nominal annual rate (APR) compounded monthly, you can use the formula EAR = (1 + APR/n)^n - 1, where APR is the annual percentage rate and n is the number of compounding periods per year. For an annual rate of 12% compounded monthly, this would be EAR = (1 + 0.12/12)^12 - 1, which results in an effective interest rate slightly higher than the nominal rate but not exactly matching any of the options provided (a through e).