Question
1.EAR (effective percentage rate)vs APR (annual percentage rate) Back when interest rates and inflation were about 18%, Congress passed the Truth in Lending Law, requiring
1.EAR (effective percentage rate)vs APR (annual percentage rate)
Back when interest rates and inflation were about 18%, Congress passed the Truth in Lending Law, requiring lenders to show both figures to prospective borrowers. If the APR on a car loan is 6%, with interest compounded annually, what's the EAR?
What is the EAR if interest is compounded Monthly? if compounded Daily? WHY are these 3 answers different?
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
