Question: Your answer: Question 8 (CHAPTER 6) The EAR, or the effective annual rate, for a bank's savings account is 8%. The interest compounds daily. The

Your answer: Question 8 (CHAPTER 6) The EAR, or the effective annual rate, for a bank's savings account is 8%. The interest compounds daily. The APR, or the stated rate, equals: (a) 7.77% (b) 7.72% (c) 7.70% (d) 5.87% (e) 5.84% In general, the lower the compounding per year, the higher the APR. This statement is: (a) True (b) False

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