Determine the effective annual yield (annual percentage yield) for $1

Question

invested for 1 year at 8.5% compounded monthly.

Answer 1

let that rate be i

(1+i)^1 = (1+.085/12)^12
1+i = 1.08839
i = .08839

so the effective annual rate is 8.839%

Answer 2

Thanks a lot