Borrow $85,000 at a rate if 9% annual with weekly compounding. What’s the EAR? 1. 9.38%...

Borrow $85,000 at a rate if 9% annual with weekly compounding. What’s the EAR?

1. 9.38%

2. 9%

3. 9.41%

4. 8.62%

Expert Solution

EAR=[(1+APR/m)^m]-1
where m=compounding periods

=[(1+0.09/52)^52]-1

which is equal to

=9.41%(Approx)

jeff jeffy answered 2 years ago

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