About the EAR and APR, You buy a Certificate of Deposit

About the EAR and APR

Assignment Help Financial Accounting

Reference no: EM13825784

EAR and APR.

a) You buy a Certificate of Deposit that quotes a nominal APR of 3% with monthly compounding. How much do you earn over a year (in percent)?

b) You want to earn an effective return of 8% per year. If your investment pays monthly interest, what must the nominal APR quote be for you to earn the effective 8%?

Reference no: EM13825784

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