An investment having a 10.47 percent effective annual rate (EAR)has what APR? (Assume monthly compounding.)
A)10.99 percent
B)9.57 percent
C)10.00 percent
D)8.87 percent

Name: An investment having a 10.47 percent effective annual rate (EAR)has what APR? (Assume monthly compounding.) A)10.99 percent B)9.57 percent C)10.00 percent D)8.87 percent
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Question

Quizplus · Accepted Answer

The formula to convert EAR to APR with monthly compounding is: APR = (1 + EAR)^(1/12) - 1) * 12. Using this formula, the APR is approximately 10.00 percent.

An Investment Having a 10