Answer:
0.104%
Step-by-step explanation:
Let r be the monthly interest rate
With annual rate, at the end of the year, amount is
12433(1 + 0.0125) = 12,588.4125
If compounded monthly
12433[(1+r)^12] = 12433(1+0.0125)
(1+r)^12 = 1.0125
(1+r) = 1.001035746
r = 0.001035746
Monthly interest rate = 0.10357r6%
0.104% (correct to 3sf)
