What is the effective annual rate
Problem
Bank A charges 10% APR on auto loans with monthly compounding. What is the Effective Annual Rate (EAR) ? In other words, what is the EAR for a 10% APR with monthly compounding?
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What is the Effective Annual Rate (EAR) ? In other words, what is the EAR for a 10% APR with monthly compounding?
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