What Is the EAR for a $100 Loan When the Interest

question 72

Multiple Choice

What is the EAR for a $100 loan when the interest is compounded monthly and the stated annual interest rate is 5.00 percent?

• A)5.00 percent
• B)5.06 percent
• C)5.12 percent
• D)5.52 percent
• E)5.92 percent

---

Definitions:

Ethics Code

A set of guidelines designed to outline acceptable behaviors and decision-making processes for individuals or organizations.

Retail Chain

A series of retail outlets owned by the same company, offering similar or identical goods and services.

Flex

To show off or boast about one's abilities or possessions in a manner that is often perceived as ostentatious.

Daily Work Hours

The number of hours an individual spends on work-related activities within a 24-hour period.