16. Suppose we borrow from a credit card company at an APR of 24%, compounded monthly. What is the EAR on this loan?

A. 26.0%

B. 27.1%

C. 26.8%

D. 27.8%

17. Related to the previous question, what is the EAR on this loan if compounded daily.

A. 26.8%

B. 28.6%

C. 27.1%

D. 27.9%

20. An investor buys 100 shares of a stock at $200 per share on 45% margin. The stock goes to $230. Ignoring all costs of transacting, the percentage return on the investors equity is

A. 16.7%

B. 33.3%

C. 15%

D. 27.3%