Question

Find the APR, or stated rate, in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Use 365 days in a year.) 

Stated Rate (APR)		Number of Times Compounded	Effective Rate (EAR)
	%	Semiannually	13.75	%
		Monthly	9.75
		Weekly	11.25
		Daily	9.25

Answer 1

APR = m[(1 + EAR)^1/m – 1]

APR = 2[(1.1375)^1/2 – 1] = 0.1331 or 13.31%

APR = 12[(1.0975)^1/12 – 1] = 0.0934 or 9.34%

APR = 52[(1.1125)^1/52 – 1] = 0.1067 or 10.67%

APR = 365[(1.0925)^1/365 – 1] = 0.0885 or 8.85%