The effective annual rate (EAR) for a loan with a stated APR of 10% compounded quarterly is closest to:a.9.65%.b.12.50%.c.15.00%d.10.00%.e.10.38%

The effective annual rate (EAR) for a savings account with a stated APR of 4% compounded daily (use 365-day year) is closest to: a. 14.60%. b. none of them. c. 4.08%. d. 4.00%. e. 3.92%.

What is the effective annual rate (EAR)?a.The discount rate for an n-year time interval, where n may be more than one year or less than or equal to one year (a fraction).b.The interest rate that would earn the same interest with annual compounding.c.the ratio of the number of the annual percentage rate to the number of compounding periods per year.d.All of them.e.the cash flows from an investment over a one-year period divided by the number of times that interest is compounded during the year

Which of the following statements is correct?Question 4Answera.An annual percentage rate (APR) does not include the effect of compounding, therefore it is usually higher than EAR.b.EAR is the annual interest rate that would earn the same interest with a quoted annual compounding interest rate.c.EAR refers to the interest earned by cash flows from an investment over a one-year period divided by the number of times that interest is compounded during the year.d.An effective annual rate (EAR) is the rate that interest earns in one year before the effect of compounding.

What is the effective annual interest rate on a 9% APR automobile loan that has monthly payments?Question 2

See how the effective return varies betweeninvestments with the same nominal rate(10%), but different compounding intervals.– EAR ANNUAL 10.00%– EAR QUARTERLY 10.38%– EAR MONTHLY 10.47%– EAR DAILY (365) 10.52%32??