Find the APR, or stated rate, in each of the following cases . (Use 365 days in

Question

Find the APR, or stated rate, in each of the following cases. (Use 365 days in a year.Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations.Enter your answers as a percent rounded to 2 decimal places (e.g. 32.16).)

Find the APR, or stated rate, in each of the following cases. (Use 365 days in a year.Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations.Enter your answers as a percent rounded to 2 decimal places (e.g. 32.16).)

Explanation / Answer

1. semi annual

stated rate = [(EAR+ 1)^(1/n) -1]*n

= (( 0.14+1)^(1/2)-1) *2

= 13.54%

2. monthly

stated rate = [(EAR+ 1)^(1/n) -1]*n

=(( 0.09+1)^(1/12) -1) *12 = 8.65%

3. weekly

stated rate = [(EAR+ 1)^(1/n) -1]*n

=(( 0.08+1)^(1/52) -1)*52

= 7.70%

4. daily

stated rate = [(EAR+ 1)^(1/n) -1]*n

=(( 0.13+1)^(1/365) -1)*365 = 12.22%

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.