Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
Joel takes out a loan with a stated rate of 11.85% interest. If the interest is calculated weekly, 0.72 percentage points greater is joel’s effective rate than his stated rate.
EARs are often accustomed to evaluate interest payable on a loan or any debt or to assess earnings from an interest investment, like a guaranteed investment certificate (GIC) or bank account.
The effective annual rate is additionally referred to as the effective charge per unit (EIR), annual equivalent rate (AER), or effective rate. The effective annual rate is often beyond the nominal rate because the nominal rate quotes a yearly percentage rate no matter compounding.
Increasing the amount of compounding periods increases the effective annual rate as compared to the nominal rate. Effective yield takes into consideration the facility of compounding on investment returns, while nominal yield doesn't.
The stated annual rate describes an annualized rate of interest that doesn't take under consideration the effect of intra-year compounding.
learn more about interest: https://brainly.com/question/25793394
#SPJ4
Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.
