Lecture 1 (Chapter 5) Flashcards
1
Q
Effective Annual Rate
A
(1+HPR)^1/T
2
Q
What grows more quickly, EAR or APR?
A
EAR grows more quickly due to compounding
EC4417 Exam > Lecture 1 (Chapter 5) > Flashcards
Effective Annual Rate
(1+HPR)^1/T
What grows more quickly, EAR or APR?
EAR grows more quickly due to compounding