The EAR with quarterly compounding, i.e. m=4, is %. (Round to two decimal places.) The EAR with monthly compounding, i.e. m=12, is \%. (Round to two decimal places.) The EAR with daily compounding, i.e. m=365, is %. (Round to three decimal places.) small.) Now, look for a pattem in your answers. What happens to the effective annual rate (the EAR) as the number of compoundings per year, m, increases? A. The EAR increases at an increasing rate (i.e. the increase in EAR gets bigger and bigger). B. The EAR increases at a decreasing rate (i.e. the increase in EAR gets smaller and smaller). C. There is no clear pattern - sometimes the EAR goes up, other times it goes down. D. The EAR decreases. even 19% if m gets sufficiently large? A. Yes, we can see that EAR increases when m increases, so any EAR is plausible for a sufficiently large m. merely by increasing m