You have an APR of 7.5% with continuous compounding. The EAR is _____.
A. 7.5%
B. 7.65%
C. 7.79 %
D. 8.25%
Answer: C. 7.79%
EAR = e^.075 - 1 = 7.79%
You have an APR of 7.5% with continuous compounding. The EAR is _____.
A. 7.5%
B. 7.65%
C. 7.79 %
D. 8.25%
Answer: C. 7.79%
EAR = e^.075 - 1 = 7.79%