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For the following situations, determine the Annual Percentage Rate (APR) and the Effective Annual Rate (EAR). (Note that many financial institutions use APY (Annual Percentage
For the following situations, determine the Annual Percentage Rate (APR) and the Effective Annual Rate (EAR). (Note that many financial institutions use APY (Annual Percentage Yield) instead of EAR.) a. $3,000 becomes $6,130.43 in four years with monthly compounding; APR = EAR b. $6,000 becomes $12,228.62 in eight years with quarterly compounding, APR = EAR = and c. Six $3,000 annual payments become $22,066.68 in six years with weekly compounding. APR = EAR =
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