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Calulating APR

Trying to find the APR or Stated Rate

Stated Rate (APR) Number of Times Compounded Effective Rate (EAR)
Semiannually 12.2%

Monthly 9.4

Weekly 8.6

Infinite 23.8

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Solution Preview

The relationship between APR and EAR is
EAR = (1+APR/a)^a -1
Where a is the compounding frequency
1. Semiannual - the compounding frequency is 2 since it is two times a year
12.2% = ...

Solution Summary

The solution explains how to determine the APR given the effective annual rate (EAR)

$2.19