The effective annual rate (EAR) of a loan will increase if
A) the frequency of the interest rate compounding is decreased.
B) the interest is changed from compound to simple interest at the same annual percentage rate (APR) .
C) the annual percentage rate (APR) is decreased.
D) either the annual percentage rate (APR) or the compounding frequency is increased.
E) the compounding of interest is changed from continuous compounding to daily compounding.
Correct Answer:
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