What is the EAR (effective annual rate) of 9.60 percent compounded quarterly?

Group of answer choices

9.68 percent

9.92 percent

9.83 percent

9.71 percent

9.95 percent

Expert Solution

We know that,

EAR = (1+ quarter rate )^4 - 1

= (1 + 0.096/4 )^4 - 1

= 9.95% Answer

The last option is correct.

jeff jeffy answered 2 years ago

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