× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
7
6
o
5
b
4
s
3
j
3
b
3
m
3
K
3
g
3
L
3
w
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
Memphic Memphic
wrote...
Posts: 728
Rep: 0 0
6 years ago
Which alternative offers you the highest effective rate of return?
A) Investment A
B) Investment B
C) Investment C
D) Investment D
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 97 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
D
Explanation:  D) EAR (A) = (1 + APR/k)k - 1 = (1 + .0625/1)1 - 1 = .0625 or 6.250%
EAR (B) = (1 + APR/k)k - 1 = (1 + .0610/365)365 - 1 = .06289 or 6.289%
EAR (C) = (1 + APR/k)k - 1 = (1 + .06125/4)4 - 1 = .06267 or 6.267%
EAR (D) = (1 + APR/k)k - 1 = (1 + .0612/12)12 - 1 = .06295 or 6.300%
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1080 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 236
  
 289
  
 342
Your Opinion
What's your favorite math subject?
Votes: 315
Previous poll results: How often do you eat-out per week?