Answered: Find the APR, or stated rate, in the…

Find the APR, or stated rate, in the following case: (show answer and excel equation formula) An effective interest of 9% with continuous compounding

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Find the APR, or stated rate, in the following case: (show answer and excel equation formula)

An effective interest of 9% with continuous compounding

Expert Solution

Step 1

The annual interest rate that is charged by the lenders or at which the investors earn additional annual income on their investment is term as APR (annual percentage rate).

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