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

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

Quizplus · Accepted Answer

The APR can be calculated using the formula: $ (1 + \frac{APR}{n})^n - 1 = EAR $, where n is the number of compounding periods per year. Solving for APR with EAR = 10.47% and n = 12 gives approximately 10.00%.

An Investment Having a 10