1)
SOLUTION :
1.
Stated rate Number of times Effective rate
(APR) compounded (EAR)
11.25% Quarterly (1 + 0.1125/4)^4 - 1 = 0.1173 = 11.73%
14.75% Monthly (1 + 0.1475/12)^12 - 1 = 0.1579 = 15.79%
17.25% Daily (1 + 0.1725/365)^365 - 1 = 0.1882 = 18.82%
13.25% Semiannually (1 + 0.1325/2)^2 - 1 = 0.1396 = 13.69%
2.
Stated rate Number of times Effective rate
(APR) compounded (EAR)
(( 1 + 0.1450)^(1/4) - 1)*400 = 13.77% Quarterly 14.50%
(( 1 + 0.1050)^(1/12) - 1)*1200 = 10.03% Monthly 10.50%
(( 1 + 0.1050)^(1/52) - 1)*5200 = 9.99% Weekly 10.50%
((1 + 0.0850)^(1/365) - 1)*36500 = 8.16% Daily 8.50%
3.
Let interest rate be r in decimals.
So,
PV = A *((1+r)^n - 1)/(r(1+r)^n)
=> 760 = 76*((1+r)^32 - 1)/(r(1+r)^32)
By trial and error , r = 0.0944 = 9.44%
Interest rate is 9.44% (ANSWER)
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