Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.):

Effective Rate (EAR) Number of Times Compounded Semiannually Monthly Weekly Infinite Stated Rate e (APR) 12.0 9.7 12.4

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[SOLUTION] Find the APR, or stated rate, in each of the following cases

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## Expert Answer

EAR=(1+APR/m)^m-1

where m=compounding periods

1.

0.111=(1+APR/2)^2-1

(1+0.111)^(1/2)=1+APR/2

Hence APR=[(1+0.111)^(1/2)-1]*2

=**10.81%(Approx).**

**2.**

0.12=(1+APR/12)^12-1

APR=[(1.12)^(1/12)-1]*12

=**11.39%(Approx).**

**3.**

0.097=(1+APR/52)^52-1

APR=[(1.097)^(1/52)-1]*52

=**9.27%(Approx).**

**4.**

EAR=e^APR-1

where e=2.71828

0.134=2.71828^APR-1

1.134=2.71828^APR

Taking log on both sides;

log 1.134=APR*log 2.71828

Hence APR=log 1.134/log 2.71828

=**12.58%(Approx).**

**find the apr, or stated rate, in each of the following cases**

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