Annual percentage rates can be converted to effective annual rates by means of the following formula:
A. [1 + (APR/n)]n - 1
B. (APR)(n)
C. (APR/n)
D. (periodic rate)(n)
Answer: A. [1 + (APR/n)]^n-1
Annual percentage rates can be converted to effective annual rates by means of the following formula:
A. [1 + (APR/n)]n - 1
B. (APR)(n)
C. (APR/n)
D. (periodic rate)(n)
Answer: A. [1 + (APR/n)]^n-1