Can you please explain the correct answers of these questions?
Correct answers are the ones with the blue arrow. Ty
Can You Please Explain The Correct Answers Of These Questions Correct Answers Are The Ones With The Blue Arrow Ty 1 (207.66 KiB) Viewed 43 times
A family wants to purchase a certificate of deposit (CD) for a down payment on a house. One bank quotes an annual percentage rate (APR) of 6.5% with daily compounding. What is the effective annual rate (EAR) of this CD? 6.64% 6.72% 6.55% 6.68%
Eventually the family purchases a home for $310,000 and lives there for 14 years, at which point they sell the home for $540,000. What was the effective annual rate (EAR) of the home's price appreciation? In other words, what was the return on investment? 3.83% 4.36% 4.16% 4.04%
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