Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 10, Problem 2MC
Summary Introduction

To Determine: The EAR that is earned from the match and the conclusion about matching the plan.

Introduction: Annualized Percentage Rate (APR) is defined as the total interest rate that is paid in a year which replicates all the costs of a loan for the duration of one year. Effective Annual Rate (EAR) is defined as the interest rate an investor earns in a current year after book-keeping for the results of compounding.

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