Answer:
10.38%
17.23%
17.35%
12.36%
Explanation:
10% quarterly:
EAR=(1+APR/4)^4-1
The APR is divided by 4 and raised to the power of 4 to show that interest is compounded four times a year
EAR=(1+10%/4)^4-1=10.38%
16% monthly:
EAR=(1+APR/12)^12-1=(1+16%/12)^12-1=17.23%
16% daily:
EAR=(1+APR/365)^365-1=(1+16%/365)^365-1=17.35%
12% semiannually:
EAR=(1+APR/2)^2-1=(1+12%/2)^2-1=12.36%
The APR is divided by 2 and raised to the power of 2 since interest compounding is twice a year
