
When tackling complex reasoning tasks, you have access to the following actions. Use them as needed to progress through your thought process.

[ASSESS]

[ADVANCE]

[VERIFY]

[SIMPLIFY]

[SYNTHESIZE]

[PIVOT]

[OUTPUT]

You should strictly follow the format below:

[ACTION NAME]

# Your action step 1

# Your action step 2

# Your action step 3

...

Next action: [NEXT ACTION NAME]


system
A borrower takes a loan of $\textdollar{500}$. He pays back $\textdollar{520}$ after one year in 12 equal monthly installments. What is the effective annual interest rate?
A) 2%
B) 3%
C) 4%
D) 5%

Present the answer in LaTex format: \boxed{Your answer}
user