Answered: What is the effective annual rate (EAR)…

What is the effective annual rate (EAR) if your credit card charges you 10.45 percent compounded quarterly? Show your formula/calculation/explanation! Why is it different from annual percentage rate?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 4QTD

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