Question
a) What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 6%, compounded semiannually? Compounded quarterly? Compounded
a) What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 6%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?
b) Will the effective annual rate ever be equal to the nominal (quoted) rate?
Show calculation (preferably using excel formula)
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The Business Of Personal Finance
Authors: Joseph Calandro Jr, John Hoffmire
1st Edition
1032104562, 978-1032104560
