What is the effective annual rate if a firm charges you 7.75 percent, compounded daily, based...

What is the effective annual rate if a firm charges you 7.75 percent, compounded daily, based on a 360-day year?

Expert Solution

EAR = (1 + r/360)³⁶⁰ - 1

Effective Annual Rate = (1 + 0.0775/360)³⁶⁰- 1

Effective Annual Rate = 8.06%

jeff jeffy answered 2 years ago

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