Question: Question 1 Help! i will rate! (CHAPTER 6) Your answer: The APR, or the stated rate, for a bank's savings account is 8%. The interest

Question 1

Help! i will rate!

(CHAPTER 6)

Your answer:

The APR, or the stated rate, for a bank's savings account is 8%. The interest compounds quarterly. The EAR, or the effective annual rate, equals:

  1. 8.33%
  2. 8.30%
  3. 8.24%
  4. 6.17%
  5. 6.14%

In general, the higher the compounding per year, the higher the EAR. This statement is:

  1. True
  2. False

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