A Bank Account Has a Rate of 12% APR with Quarterly

question 88

Multiple Choice

A bank account has a rate of 12% APR with quarterly compounding.What is the EAR for the account?

• A) 3.00%
• B) 12.00%
• C) 12.36%
• D) 12.55%

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Definitions:

Oral Contract

An agreement between parties that is spoken and not written, yet is legally binding unless specifically required by law to be written.

Enforceable

Capable of being executed or imposed in accordance with legal or contractual requirements.

Debt

Money owed by one party, the debtor, to another party, the creditor; an obligation to pay or do something.

Enforceable

Legally binding; capable of being upheld or imposed in a court of law.