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The image shows a question asking for the effective annual rate (EAR) corresponding to a nominal interest rate of 17% compounded semi-annually. The available choices are 17.2%, 17.34%, 17%, and 16.75%.

### To solve for the Effective Annual Rate (EAR), you can use the formula:
\[
\text{EAR} = \left(1 + \frac{r}{n}\right)^n - 1
\]
where:
- \( r \) is the nominal annual interest rate (0.17 or 17% in this case),
- \( n \) is the number of compounding periods per year (2 for semi-annual compounding).

### Substituting the values:
\[
\text{EAR} = \left(1 + \frac{0.17}{2}\right)^2 - 1
\]
\[
\text{EAR} = \left(1 + 0.085\right)^2 - 1
\]
\[
\text{EAR} = (1.085)^2 - 1
\]
\[
\text{EAR} = 1.176225 - 1 = 0.176225
\]
\[
\text{EAR} = 0.176225 \times 100 = 17.6225\%
\]

Therefore, the closest option to the calculated EAR is **17.34%**.

### Do you have any further questions or would you like more details on the steps?

### Related Questions:
1. What is the formula for the Effective Annual Rate (EAR) when compounded monthly?
2. How does compounding frequency affect the EAR compared to the nominal rate?
3. Can EAR be lower than the nominal rate in any situation?
4. How would the EAR change if the compounding was quarterly instead of semi-annual?
5. What is the difference between APR (Annual Percentage Rate) and EAR?

### Tip:
Always ensure to use the correct number of compounding periods in the EAR formula to avoid errors.

What is the effective annual rate (EAR) corresponding to a nominal interest rate of 17% compounded semi-annually?

Learn how to calculate the Effective Annual Rate (EAR) for a nominal interest rate of 17% compounded semi-annually. This guide covers key financial concepts including compounding and the EAR formula, suitable for college-level finance students.

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