Find the APR, or stated rate, in each of the following cases. (Do not round inte

Question

Find the APR, or stated rate, in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g, 32.16. Use 365 days in a Number of Times. Compounded Stated Rate (APR) Semiannually Monthly Weekly Daily Effective Rate (EAR) 14.00% 10.00 11.00 9.00 % % References eBook & Resources Worksheet Learning Objective: 05-04 Explain how interest rates are quated (and misquoted). Difficulty: 1 Basic Section: 5.3 Comparing Rates: The Effect of Compounding Periods

Explanation / Answer

APR = [(1+EAR)^(1÷n)-1]×n n is number of compounding per year a Semi-anually 13.54% =((1+14%)^(1/2)-1)*2 b Monthly 9.57% =((1+10%)^(1/12)-1)*12 c Weekly 10.45% =((1+11%)^(1/52)-1)*52 d Daily 8.62% =((1+9%)^(1/365)-1)*365

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