Find the apr or stated rate in each of the following cases...

Find the APR, or stated rate, in each of the following cases. (Use 365 days in a year. Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) % Semiannually 13.75 % % Monthly 9.75 % Weekly 11.25 % Daily 9.25

Transcript

00:01 Hello students, we are given a question here that we need to calculate the apr, okay? so, or can be said as stated rate, we are given here number of times compounded and the effective annual rate.

00:12 So first of all, we are supposed to know that here the formula of apr is like a m times of 1 plus ear and its whole power is 1 divided by m minus 1.

00:27 Okay, students, what is m? it is nothing but the number of periods, ear is effective annual rate.

00:34 So basically we will start with first part when ear is given as equal to, as we can see here, 13 .75 % okay, students, and what will be the value of m? as we are given, it is semi -annually.

00:50 So there are two semi -annuals in a one year.

00:53 So m will be equal to two.

00:55 Okay so now we can just write here that the apr here we can write that apr will be equal to ms2 times of 1 plus ear 13 .75 so 0 .31375 and whole power is 1 divided by 2 minus 1 okay students so how we will solve it see we are supposed to know that here 1 plus 0 .1375 and its power is 1 divided by 2.

01:32 Students then minus 1.

01:35 So it should be like 2 times of 0 .066 53645.

01:43 So we can just say that here when we multiply this term by 2, we will get it as 0 .1330729.

01:50 And it can be written as equals to 13 .31 percentage.

01:56 Okay students it is the required apr now we will go for the second part when ear is given as equivalent to as we can see here ear is 9 .75 so we can write here 9 .75 percentage and m will be equal to here we can just say that there are it is monthly so there are 12 months in a year so it should be like the m is equal to 12.

02:24 So apr will be equivalent to.

02:27 So now apr will be equal to 12 times of here 1 plus 9 .75.

02:33 Okay, students.

02:35 So 9 .75 divided by 100, which will be equal to 0 .0975 and whole power is 1 divided by 12 minus 1.

02:44 So it should be like 12 times of see it 1 .0975 and it's of full power is 1 divided by 12.

02:56 Okay students and then minus 1.

02:59 So what we will get it will be equal to 0 .00778304 and when we multiply this term by 12 we will get it as 0 .093.

03:14 Okay students 933.

03:17 9648.

03:18 So it should be like a 9 .3396 percentage.

03:24 Students or can be said as 9 .3 .3 % percentage.

03:32 Okay students.