Question

Find the effective annual interest rate or annual percentage rate for each case: APR Compounding period...

Find the effective annual interest rate or annual percentage rate for each case:

APR

Compounding period

Number of compounding periods

EAR

Case : A

9%

1 month

12

?

Case : B

6%

3 months

4

?

Case : C

?

4 months

3

12.4864%

Case : D

?

6 months

2

10.25%
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Answer #1

I have answered the question below using excel and have attached the image below.

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Answer:

Formula for effective interest rate is as follows,

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