A. What single sum should now be invested, if compounding is six-monthly b. What is the APR?
2. Find the APR on a loan corresponding to 6.0% compounded monthly.
0.06
APR = (1+-) – 1 = (1+ - 12 – 1 = 6.17%
12
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3. Calculate the APR for 6% p. a. nominal rate of interest that is compounded
a. 4 times per year
b. 12 times per year
c. Continuously
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