EAR=(1+APR/m)^m-1
where m=compounding periods
=(1+0.18/12)^12-1
which is equal to
=19.56%(Approx).
Calculate the effective annual interest rate charged by a bank if the APR is 18%, c....
If the APR for a car loan is 14%, what is the effective annual interest rate (in %) if interest on the loan is compounded monthly and you have biweekly payments?
If the APR for a car loan is 5%, what is the effective annual interest rate (in %) if interest on the loan is compounded monthly and you have biweekly payments? Is the answer 0.20812%?
a. A bank offers 5.00% on savings accounts. What is the effective annual rate if interest is compounded quarterly? b. A bank offers 5.00% on savings accounts. What is the effective annual rate if interest is compounded monthly?
Bank A charges a 7.75 percent annual percentage rate and interest is due at the end of the year. Bank B charges a 7 percent annual percentage rate and interest must be paid monthly. What is the effective annual rate charged by each bank?
Find the APR, or stated rate, in each of the following cases: a. An effective interest of 6% compounded semiannually b. An effective interest of 6% compounded monthly c. An effective interest of 10% compounded weekly d. An effective interest of 13% with continuous compounding
Your bank (A) offers you an automobile loan at 12% APR, but the interest rate is going to be compounded monthly. What is the EAR that you will be paying? If another bank (B) offers you a 10% annual rate (APR) and the interest rate is compounded semi- annually. Which of the options will you choose?
Q3 What is the effective annual interest rate from a bank that offers annual interest of 10% compounded quarterly? A) 10% B) 11.25% C) 10.38% D) 40%
What is the effective annual rate for an APR of 17.00 percent compounded monthly?
What is the effective annual rate for an APR of 15.70 percent compounded monthly?
APR is 20%, compounded monthly. What is the semiannual effective interest rate?