If the annual percentage rate (APR) of an investment is 12% compounded quarterly, what is the effective annual rate (EAR)? Multiple choice question. 3.00% 26.25% 12.55% 57.35%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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If the annual percentage rate (APR) of an investment is 12% compounded quarterly, what is the effective annual rate (EAR)?

Multiple choice question.

3.00%

26.25%

12.55%

57.35%

 

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