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Your bank account pays interest with an EAR of 5%. What is the APR quote for this accountbased on semiannual compounding? What is the APR with monthly compounding? With smaller compounding period but a constant EAR, how does the APR change? For advertisement purposes which period would you use: annual, semi-annual, monthly, or daily?
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Your bank account pays interest with an EAR of 5%. What is the APR quote for this accountbased on se...
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