Question 696569
EAR = Effective Annual Rate
i = annual interest rate
n = number of compounding periods


EAR = (1 + i/n)^n - 1


EAR = (1 + 0.12/12)^12 - 1


EAR = (1 + 0.01)^12 - 1


EAR = (1.01)^12 - 1


EAR = 1.12682503013197 - 1


EAR = 0.12682503013197


Multiply this by 100 to get 12.68%


So the effective annual rate is 12.68%