Lecture 3- EAR and APR Problems

Lecture 3- EAR and APR Problems - B 8.2 with semi-annual...

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Lecture 3- Ch.4, Additional EAR and APR Problems 1. What is the EAR on a 9% APR automobile loan that has monthly payments? A) 9.00% B) 9.38% C) 9.81% D) 10.94% 2. Which account would be preferred by a depositor: an 8% APR with monthly compounding or an 8.2% APR with semi-annual compounding? A) 8% with monthly compounding
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Unformatted text preview: B) 8.2% with semi-annual compounding C) The depositor would be indifferent D) The time period must be known in order to select the preferred account 3. If the EAR is known to be 16.08% on a debt that has quarterly payments, what is the APR on the debt? A) 14.02% B) 14.82% C) 15.20% D) 15.60%...
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This note was uploaded on 06/04/2011 for the course ADMS 3530 taught by Professor Unknown during the Spring '09 term at York University.

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