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.): Stated Rate (APR) % Number of Times Compounded Semiannually Monthly Weekly Infinite Effective Rate (EAR) 11.0 % 11.9 9.6 13.3

Answer 1

A B с D 1 Calculation of APR- 2 Stated Rate (APR) 3 2 Effective Rate (EAR) 11.00% 11.90% 9.60% 13.30% Number of Times Compounded 10.71% semiannually 11.30% Monthly 9.17% Weekly 12.49% Infinite 4 12 5 52 6 7 8 Note - 9 1 10 EAR = ((1+APR/No. of compounding periods)^No. of compounding periods)-1 11 APR=(No. of Compounding periods)*((1+EAR)^1/no. of componding periods-1) 12 13 2. Formula when no. of times compounding is infinity- 14 APR = LN(1+EAR)

А B с D 1 Calculation of APR- 2 Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 3 =2*((1+D3)^(1/2)-1) Semiannually 2 0.11 4 =12*((1+04)^(1/12)-1) Monthly 12 0.119 5 -52*((1+05)^(1/52)-1) Weekly 52 0.096 6 ELN(1+06) Infinite 0.133 7 8 Note - 9 1 10 EAR = ((1+APR/No. of compounding periods)“No. of compounding periods)-1 11 APR=(No. of Compounding periods)*((1+EAR)^1/no. of componding periods-1) 12 13 2. Formula when no. of times compounding is infinity- 14 APR = LN(1+EAR)

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