Question

Find the EAR in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Use 365 days in a year.)

Stated Rate (APR)	Number of times compounded	Effective rate (EAR)
11%	Quarterly
15%	Monthly
17%	Daily
13%	Semiannually

Answer 1

Effective rate is the rate you come across when taking the effect of compounding into account.

EAR = (1 + APR/N)^N

1) EAR = (1 + 0.11/4)^4 - 1 = 11.46%

2) EAR = (1 + 0.15/12)^12 -1 = 16.08%

3) EAR = (1+0.17/365)^365 - 1 = 18.53% (assuming 365 days a year as the assumption of days in question is not visible. Let me know if the assumption is different and I'll make the required changes.)

4) EAR = (1 + 0.13/2) ^2 - 1 = 13.42%

Do let me know in the comment section in case of any doubt.