Question
Suppose your neighbor offers to lend you $1,000 today on the condition that you will repay him back $1,100 in one month. interest rate evaluates
Suppose your neighbor offers to lend you $1,000 today on the condition that you will repay him back $1,100 in one month. interest rate evaluates to 10% for the period of the loan. which of the following will definitely be higher than 10%?
A. Annual percentage rate (APR)
B. EAR but not APR
C. Effective annual rate (EAR)
D. APR but not EAR
E. Both APR and EAR
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakin
7th Global Edition
0273754440, 9780273754442
