What is the EAR if the APR is 10.52% and compounding is daily?
A) Slightly above 10.09%
B) Slightly below 11.09%
C) Slightly above 11.09%
D) Over 11.25%
Answer: C
Explanation: C) Using the EAR formula, we get 11.0916% or slightly above 11.09%.
EAR = [(1 + APR/m)m] -1 = [(1 + 0.1052/365)365] -1 = 11.0916%.
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