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III. Mix and Match Match the interest rate relationship to a math formula. 1. Effective Annual Rate vs. Annual Percentage Rate 2. Effective Annual Rate
III.
Mix and Match
Match the interest rate relationship to a math formula.
1. Effective Annual Rate vs. Annual Percentage Rate
2. Effective Annual Rate vs. Annual Percentage Rate and with Continuous Compounding
3. Interest Rate per Compounding Period
4. Equivalent -Period Discount Rate
A. EAR(E+ APR/NK-I,O.I+EAR- 1- 490
B. APR = In(1 + EAR), or, EAR = e^APR - 1 C. APR/(k periods/year)
D. (1+r)^n-1
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