What is the effective annual rate


Problem:

What is the effective annual rate of 5.25 percent compounded continuously? The correct answer is B: 5.39% but I do not know how to get it.

a. 5.27 percent

b. 5.39 percent

c. 5.44 percent

d. 5.48 percent

e. 5.56 percent

Please provide step by step solution.

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Finance Basics: What is the effective annual rate
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