Find the EAR in each of the following cases Use 365 days a y

Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 8.7 % Quarterly % 17.7 Monthly 13.7 Daily 10.7 Infinite

Solution

EAR=[1+(apr/m)]^m-1
a)=[1+(8.7%/4)]^4-1=8.99%
b)=[1+(17.7%/12)]^12-1=19.21%
c)=[1+(13.7%/365)]^365-1=14.68%
d)=e^rate-1=e^10.7%-1=11.29%

Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal p

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