EAR & APR
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Real intrest rate when r= 3% and i=2%?
1,0098
EAR quarterly with 9% discount rate
1.09^(1/4) - 1 = 0,0218
APR with 5% annual compounding?
5/2 = 2.5%
Real intrest rate when r= 3% and i=2%?
1,0098
EAR quarterly with 9% discount rate
1.09^(1/4) - 1 = 0,0218
APR with 5% annual compounding?
5/2 = 2.5%