A given rate is quoted as 12% APR, but has an effective annual rate (EAR) of 12.55%.
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Question:
A given rate is quoted as 12% APR, but has an effective annual rate (EAR) of 12.55%. What is the frequency of compounding during the year?
a.Annually
b.Semiannually
c.Quarterly
d.Monthly
e.Daily
Expert Answer:
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