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What is an APR? What is an EAR? Are they the same thing? In general, what...

What is an APR? What is an EAR? Are they the same thing? In general, what is the relationship between a stated interest rate and an effective interest rate? Which is more relevant for financial decisions?

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APR and EAR: What is meant by the ”frequency of compounding”? Illustrate the meaning of the...
APR and EAR: What is meant by the ”frequency of compounding”? Illustrate the meaning of the “frequency of compounding” for a one-year investment of $100 with an APR of 10% and both annual and semiannual compounding. For a monthly rate of 1%, what is the APR and EAR? What is the relationship--positive or negative--between the APR and EAR and the frequency of compounding? Use the EAR formula and make up a specific numerical example to illustrate that (a) the EAR...
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Suppose you are given an APR of 5.3% that compounds semiannually, what is the EAR?
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If EAR is 12% and compounding semiannually, what is the APR? options: 12.05% 11.66% 11.4% 11.48%
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Consider a $100 investment paying an EAR of 3.72%, what is the equivalent APR compunded monthly...
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What is the difference between the annual percentage rate (APR) and the effective annual rate (EAR)?...
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Should we care more about APR or EAR? Why?
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