Question 3 (1 point) Calculate the Effective Annual Rate (EAR): $500 today invested in a financial...

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business accounting

Answer 1

Answer #1

Option D - 12.685% Working Note: Effective Annual Rate = (1+i/n)^n - 1 =(1+0.12/8)^8-1 =0.12649 EAR = 12.6825 %(Approx) Note:

Answer 2

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