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a) What is the EAR of an APR of 8%, quarterly compounding? b) A credit union wants to charge its customers an EAR of
a) What is the EAR of an APR of 8%, quarterly compounding? b) A credit union wants to charge its customers an EAR of 12% on its loans. Interests are charged every month. How much should the credit union state on its loan contracts? (i.e., what is the APR on the loans?) c) Suppose you can borrow money at 8.5 percent per year compounded semi- annually or 8.4 percent per year compounded monthly. Which is the better. deal?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
