Having trouble with converting APR to EAR since it is compounding quarterly. You are quoted an APR
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Question:
Having trouble with converting APR to EAR since it is compounding quarterly.
You are quoted an APR (Annual Percentage Rate) on a loan of 13%. The
APR is a stated rate. The loan has quarterly compounding.
a. (2 points) What is the periodic quarterly rate? .0325, I get this...
b. (6 points) What is the equivalent effective monthly rate? Please round
to six places in your calculation. .010718...cant figure this out.
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