A given rate is quoted as 12 apr but has an effective


A given rate is quoted as 12% APR, but has an effective annual rate (EAR) of 12.55%. What is the frequency of compounding during the year?

a. Annually

b. Semiannually

c. Quarterly

d. Monthly

e. Daily

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Basic Statistics: A given rate is quoted as 12 apr but has an effective
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