EAR. What is the effective annual rate (EAR) of a mortgage that is advertised at 11.5%...

Question

Question

EAR. What is the effective annual rate (EAR) of a mortgage that is advertised at 11.5% (APR) over the next twenty years and p

Answer 1

Answer #1

APR(weekly) = 11.5%

EAR = (1 + 0.115/52)52 -1

EAR = 12.17%

Effective Annual Rate = 12.17%

Answer 2

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