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Which choices are correct about Effective annual rate (EAR)? EAR includes the effect of any compounding. EAR indicates the true amount of interest earned in
- Which choices are correct about Effective annual rate (EAR)?
- EAR includes the effect of any compounding.
- EAR indicates the true amount of interest earned in one year
- EAR is the rate that you would earn the same interest with annual compounding.
- EAR is the amount of simple interest earned in one year.
- EAR is also known as stated interest rate or quoted interest rate.
- U.S. laws require lenders to disclose EAR on virtually all consumer loans.
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Financial Management Principles And Practice
Authors: Timothy Gallagher
6th Edition
1930789157, 978-1930789159
