Question

In most cases a paragraph or so for each question will be sufficient. For problems, show...

In most cases a paragraph or so for each question will be sufficient. For problems, show your work such as calculator inputs and outputs for full credit.

  1. What is an EAR, and how is it computed?

Homework Answers

Answer #1

Effective Annual Rate(EAR)

The EAR is the rate of interest actually earned on an investment or paid on a loans as a result of compounding the interest over a given period of time.It is actually higher than the nominal rate and is used to compare different financial products that calculate annual interest with different compounding periods-Weekly,monthly,yearly,etc.

EAR=[1+(Nominal Interest Rate/no. of compounding period)]^no. of compounding period-1

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In most cases a paragraph or so for each question will be sufficient. For problems, show...
In most cases a paragraph or so for each question will be sufficient. For problems, show your work such as calculator inputs and outputs for full credit. What is a perpetuity? An annuity?
In most cases a paragraph or so for each question will be sufficient. For problems, show...
In most cases a paragraph or so for each question will be sufficient. For problems, show your work such as calculator inputs and outputs for full credit. 1. How do financial cash flows and the accounting statement of cash flows differ? Which is more useful for analyzing a company?
In most cases a paragraph or so for each question will be sufficient. For problems, show...
In most cases a paragraph or so for each question will be sufficient. For problems, show your work such as calculator inputs and outputs for full credit. Companies pay rating agencies such as Moody's and S&P to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so is strictly voluntary. Why do you think they do it?
Each question will be labeled as a calculator or formula question. For calculator problems , you...
Each question will be labeled as a calculator or formula question. For calculator problems , you are to label and input all the variables of interest: N, I/Y, PV, PMT, FV (and Begin mode if you switch). the unknown variable should be indicated by a ? symbol. Once solved, rewrite the variable identifier with the correct answer. For the formula problems, set up the problem and solve. Be sure to show each step for credit. Answer each question in BB...
Find the EAR in each of the following cases: SHOW WORK Stated Rate (APR) Number of...
Find the EAR in each of the following cases: SHOW WORK Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 9% Quarterly ? 18% Monthly ? 14% Daily ? 11% Infinite ?
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no less than 4 sentences and no more than 10 sentences. Points will be deducted for answers with fewer than 4 sentences or extra long posting (0.5 points per each answer). Give only the essential information. Writing long, run-on sentences will be considered as multiple sentences. Answer ALL PARTS of each question to earn full points. Support your response with the appropriate citation from your...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no less than 4 sentences and no more than 10 sentences. Points will be deducted for answers with fewer than 4 sentences or extra long posting (0.5 points per each answer). Give only the essential information. Writing long, run-on sentences will be considered as multiple sentences. Answer ALL PARTS of each question to earn full point. Support your response with the appropriate citation from your...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no less than 4 sentences and no more than 10 sentences. Points will be deducted for answers with fewer than 4 sentences or extra long posting (0.5 points per each answer). Give only the essential information. Writing long, run-on sentences will be considered as multiple sentences. Answer ALL PARTS of each question to earn full point. Support your response with the appropriate citation from your...
Find the EAR in each of the following cases. (Do not round intermediate calculations and enter...
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) 11.75 % Quarterly    % 14.25 % Monthly % 17.75 % Daily % 13.75 % Semiannually % Please show work. Thumbs up!
answer all 10 questions answer all questions Flag this Question Question 4 10 pts A rocket...
answer all 10 questions answer all questions Flag this Question Question 4 10 pts A rocket launcher has a spring constant of 783 N/m. What force is required to stretch the spring a distance of 2 m? You must show work to earn credit for your answer. HTML EditorKeyboard Shortcuts 12pt Paragraph p 0 words Flag this Question Question 5 10 pts A spring has a spring constant of 96 N/m. How much work is done when the spring stretches...