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Find the APR, or stated rate, given the EAR, or effective annual interest rate. Required: (a) An effective interest of 18% (quote as an APR
Find the APR, or stated rate, given the EAR, or effective annual interest rate. Required: (a) An effective interest of 18% (quote as an APR compounded semiannually) X 18.81% (b) An effective interest of 13% (quote as an APR compounded monthly) 13.42% (c) An effective interest of 12% (quote as an APR compounded weekly) 12.48% (d) An effective interest of 7% (quote as an APR with infinite, or continuous, compounding). NOTE: here you use the equation EAR = ePT 1. Don't forget that the natural log of the natural number e raised to the power X is equal to X. 6.77%
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