100 points Problem 613 Calculating APR LO4 Find the APR or s

1.00 points Problem 6-13 Calculating APR LO4] Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Number of Times Compounded Semiannually Monthly Weekly Infinite Stated Rate (APR) Effective Rate (EAR) 12.4% 13.3 11.0 14.7 ReferenceseBook & Resources Worksheet Problem 6-13 Calculating APR LO4] O Type here to search

Solution

APR Here we are given the EAR and need to find the APR. Using the equation: EAR = [1 + (APR / m )]^m – 1 We can now solve for the APR. Doing so, we get: APR = m [(1 + EAR) 1/ m – 1] APR = 2[(1.124)^1/2 – 1] = 12.04% APR = 12[(1.133)^1/12 – 1] = 12.55% APR = 52[(1.11)^1/52 – 1] = 10.45% APR = 365[(1.147)^1/365 – 1] = 13.72%