Asked by Alanis Matthews on Jun 04, 2024
Verified
A loan for a new car costs the borrower .8% per month. What is the EAR?
A) .80%
B) 6.87%
C) 9.6%
D) 10.03%
EAR
Effective Annual Rate, a measure of interest that takes into account the compounding of interest over time.
Borrower
An individual, company, or entity that receives funds from another party with the agreement to repay the principal amount along with any agreed-upon interest.
- Understand the impact of inflation on the actual returns of investments.
Verified Answer
JB
Learning Objectives
- Understand the impact of inflation on the actual returns of investments.