You Have an EAR of 9

question 52

Multiple Choice

You have an EAR of 9%. The equivalent APR with continuous compounding is ________.

• A) 8.47%
• B) 8.62%
• C) 8.88%
• D) 9.42%

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Definitions:

Equity Accounts

Accounts that represent the owner's or shareholders' interest in a company, reflecting the residual assets of the company after liabilities are deducted.

Debits

An entry recorded on the left side of a double-entry bookkeeping system that increases asset or expense accounts, or decreases liability, equity, or income accounts.

Credits

Credits refer to the accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

Customer Transaction

An operation between a business and its customer involving the sale or purchase of goods or services.