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Finance Chapter 5
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Interest rate conversion Step #3 changes the quotation period or the compounding period?
The quotation period changes, compounding period does not. Changing effective rate to a non-effective rate.
Interest rate conversion Step #2 changes the quotation period or the compounding period?
In Step #2 both the quotation period and the compounding period change. Changes one effective rate to another effective rate.
What is APR?
Annual Percentage Rate
Interest rate conversion Step #1 changes the quotation period or the compounding period?
Quotation period changes in Step #1. Changes from non-effective rate to effective rate.
How are credit care rates quoted?
Year compounding daily.
QP =year
CP = daily
What is EAR?
Effective Annual Rate
How are Canadian mortgage rates quoted?
Yearly compounding semiannually
QP = Year
CP = semiannual
Author
Chas
ID
337770
Card Set
Finance Chapter 5
Description
Finance Chapter 5
Updated
2018-02-02T19:14:26Z
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