What is the effective annual rate $($EAR$)?$

Group of answer choices

It is the interest rate for an n$-$year time interval, where n may be more than one year or less than or equal to one year $($a fraction$).$

The actual annualized interest rate earned after accounting for multiple annual compounding.

It refers to the cash flows from an investment over a one$-$year period divided by the number of times that interest is compounded during the year.

It is the ratio of the number of the annual percentage rate to the number of compounding periods per year.