Question

Find the APR, or stated rate, in each of the following cases. (Use 365 days in a year.Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations.Enter your answers as a percent rounded to 2 decimal places (e.g. 32.16).)

Stated Rate (APR)	Number of Times Compounded	Effective Rate (EAR)
%	Semiannually		14
%	Monthly		9
%	Weekly		8
%	Daily		13

Answer 1

EAR =	( 1 + r /n)n - 1
	Compounded Semi-anually
EAR =	( 1 + r /n)n - 1
14% =	( 1 + x%/2)^2 - 1
x =	13.54%
	Compounded Monthly
EAR =	( 1 + r /n)n - 1
9% =	( 1 + x%/12)^12 - 1
x =	8.65%
	Compounded Weekly
EAR =	( 1 + r /n)n - 1
8% =	( 1 + x%/52)^52 - 1
x =	7.70%
	Compounded Daily
EAR =	( 1 + r /n)n - 1
13% =	( 1 + x%/365)^365 - 1
x =	12.22%