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What is the effective annual rate (EAR) with an annual rate of 10.21% compounded continuously? Please...

  1. What is the effective annual rate (EAR) with an annual rate of 10.21% compounded continuously?

    Please round your answer to the fourth decimal. (e.g. if the answer is 1.11%, you should input 0.0111).

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Answer #1

EAR=(e)^APR-1

Where e=2.71828

=[(2.71828)^0.1021]-1

Which is equal to

=0.1075(approx).

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