The Effective Annual Rate (EAR)for a Loan with a Stated

question 11

Multiple Choice

The effective annual rate (EAR) for a loan with a stated APR of 8% compounded monthly is closest to:

• A)7.72%.
• B)8.00%.
• C)8.30%.
• D)8.66%.

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Definitions:

Job Candidate

An individual who applies for or is being considered for an employment position within an organization.

Circulatory System

The body's system responsible for transporting blood, nutrients, gases, and wastes to and from cells, helping to fight diseases and help stabilize body temperature and pH.

Gas Exchange

The biological process through which organisms exchange oxygen and carbon dioxide with their environment, essential for respiration.

Diffusion

The movement of molecules or particles from an area of higher concentration to an area of lower concentration until equilibrium is reached.