If the bank is quoting an Annual Percentage Rate (APR) of 0.074 compounded semiannually (N=2), what is the Effective Annual Rate for the year in percent (0.052 is 5.2%, so answer 5.2000)?
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| APR = | 0.074 | compounded semiannual | ||
| Effective annual rate = | =((1+0.074/2)^2)-1 | |||
| 7.54% | ||||
| therefore answer = | 7.54 | |||
If the bank is quoting an Annual Percentage Rate (APR) of 0.074 compounded semiannually (N=2), what...