Question
Which of the following will most likely increase the effective annual rate (EAR) of a loan? a. Changing from weekly compounding to daily compounding b.
Which of the following will most likely increase the effective annual rate (EAR) of a loan?
| a. | Changing from weekly compounding to daily compounding | |
| b. | Decreasing the frequency of the interest compounding | |
| c. | Applying only simple interest | |
| d. | Decreasing the annual percentage rate |
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
