You receive a mortgage quote in Canada with a rate of 4%. What is the effective...

Question

Question

You receive a mortgage quote in Canada with a rate of 4%. What is the effective annual rate (EAR)? What is the implied monthly rate?

business finance

Answer 1

Answer #1

EAR (1+APR/12)^12-1 (1+0.04/12)^12-1 0.040742 4.07% Implied Monthly Rate APR/12 0.003333 0.33%)

Answer 2

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