Question: Given a 25% APR compounded every 3 years, what is the effective annual rate? a.8.33% b.2.70% c.27.14% d. This question is incorrect. compounding has to

Given a 25% APR compounded every 3 years, what is the effective annual rate?

a.8.33%

b.2.70%

c.27.14%

d. This question is incorrect. compounding has to be over a period less than a Year, such as Monthly, Quarterly, etc.

e.20.51%

Please Why the response is e not c.

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