The effective annual rate (EAR) for a loan with a stated APR of 6% compounded quarterly is closest to:
A. 6.14%
B. 7.36%
C. 7.98%
D. 6.75%
EAR=[(1+APR/m)^m]-1
where m=compounding periods
=[(1+0.06/4)^4]-1
which is equal to
=6.14%(Approx)
The effective annual rate (EAR) for a loan with a stated APR of 6% compounded quarterly...
Find the EAR in each of the following cases Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 11.50 % Quarterly % 14.50 % Monthly % 17.50 % Daily % 13.50 % Semiannually %
Find the EAR for the stated rate (APR) of 12.4 percent compounded quarterly. (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
What is the effective annual rate for an APR of 10.70 percent compounded quarterly?
A car loan requiring quarterly payments carries an APR of 12%. What is the effective annual rate of interest (EAR)? Multiple Choice 11.50% 12.00% 12.56% 13.14%
A bank offers a loan that will requires you to pay 8% (APR) interest compounded quarterly. Which of the following is closest to the EAR charged by the bank? Select one: o a. 14.46% o b. 8.24% c. 5.78% d. 8.68% O
Calculate the EAR given the stated APR and compounding period: Stated Rate (APR, pct) Compounding Period EAR 6 quarterly ? A. 6.136 % B. 6.090 % C. 5.870 %
Find the effective annual interest rate (EAR) for each of the following: 4.00 percent compounded quarterly. (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % 4.80 percent compounded monthly. (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate% 6.50 percent compounded semiannually. (Round answer to 2 decimal places, e.g. 15.25%.) Effective Annual Rate % 4.50 percent compounded daily. (Round answer to 2 decimal places, e.g. 15.25%. Use 365 days for calculation.) Effective Annual Rate %
1. A loan has a stated interest rate of 0.82% every month. What is the EAR for this loan? Be careful with this wording. It is intentional. 2. A loan has a stated interest rate of 6.3% compounded quarterly. What is the EAR for this loan? 2. A loan has a stated interest rate of 6.3% compounded quarterly. What is the EAR for this loan?
A credit card dharges an APR of 14.90% compounded quarterly. What is the Effective Annual Rate charged on the card? 14.90% 15.23% 15.54% 15.75%
What is the effective annual rate (EAR) of a 9 percent annual stated rate that is compounded daily. (assume 365 days per year)? O9.2025% O 9.4162% 09.3083% 9.3807% O None of these are correct.