25. The stated rate of interest is 10%. Which form of compounding will give the highest effective rate of interest?
A. annual compounding
B. monthly compounding
C. daily compounding
D. continuous compounding
E. It is impossible to tell without knowing the term of the loan.
25. The stated rate of interest is 10%. Which form of compounding ...
Compounding interest is investigated.
Annual Percentage Rate vs. Effective Annual Rates
Please help with the following problem. Provide at least 300 words in the solution.
Do you think that lending laws should require lenders to report Effective Annual Rates (EAR) or Annual Percentage Rates (APR)? Why? What are the impacts of EARs versus APRs to the borrowers?View Full Posting Details