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Find the APR, or stated rate, in each of the following cases:

Stated Rate (APR) Number of Times Effective
Compounded Rate (EAR)
% Semiannually 11.9%
Monthly 12.8
Weekly 10.5
Infinite 14.2

1 Answer

6 votes

Answer and Explanation:

The annual percentage rate or stated rate is as follows;

Effective annual rate = [1 + (Annual percentage rate ÷ compounding period )]^compounding period - 1

Annual percentage rate

= 2[(1.119)1 ÷ 2 - 1]

= 11.57%

Annual percentage rate is

= 12 [(1.128)1 ÷ 12 - 1]

= 12.11%

Annual percentage rate

= 52[(1.105)1 ÷ 52 - 1]=

= 9.99%

Annual percentage rate

= 365[(1.142)1 ÷ 365 - 1]

= 13.28%

User Alexandr Priezzhev
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