8% APR paid quarterly is (1.02)^4 -1 = 8.243%
16% APR paid monthly is (1.01333)^12 -1 = 17.22%
12% APR paid daily is (1.0003288)^365 = 12.75%
15% APR compounded with infinite frequency is
e^.15 -1 = 16.18%
Find the EAR in each of the following cases.
Stated Rate (APR) Number of Times
8 % Quarterly %
16 % Monthly %
12 % Daily %
15 % Infinite %
2 answers
Thank you, that infinite was was real confusing. Any advice on the other two questions I posted?