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A new coffee machine costs $50,850 and the finance office has quoted you an Annual Percentage Rate (APR) of 5.9%, compounded monthly, for 36 months. What is the Effective Annual Rate (EAR)?
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A new coffee machine costs $50,850 and the finance office has quoted you an Annual Percentage Rate (APR) of 5.9%, compounded monthly, for 36 months. What is the Effective Annual Rate (EAR)?

User Avelyne
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1 Answer

4 votes

Answer:

6.062189766%

Step-by-step explanation:


(1+(.059)/(12))^(36)=(1+i)^3\\

User Demmy
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