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If the effective annual interest rate is 6%, what is the nominal rate or APR (Annual Percentage Rate), given monthly compounding?
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The problem asks us to convert an effective annual rate (EAR) of 6% to a nominal annual rate (APR) with monthly compounding.
To relate EAR to a monthly-compounded nominal rate, use the formula (1 ......Login to view full explanationLog in for full answers
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