Find the APR (the stated interest rate) for each case.

Find the APR (the stated interest rate) for each case.

 

Explanation

Some values below may show as rounded for display purposes, though unrounded numbers should be used for actual calculations.

t = 12 / Number of months in the compounding period
APR	=	[(1 + EAR)1 / t – 1] × t
APR	=	[(1 + .1069)1 / 12 – 1] × 12
	=	.1020, or 10.20%
APR	=	[(1 + .0619)1 / 2 – 1] × 2
	=	.061, or 6.10%
APR	=	[(1 + .0846)1 / 4 – 1] × 4
	=	.082, or 8.20%

Your calculator may also have an ICONV function.
Calculator computations:

NOM	= APR
C/Y	= 12 / Number of months in the compounding period
EFF	= Effective Annual Rate

NOM	=	10.69
C/Y	=	12
CPT EFF	=	10.20
NOM	=	6.19
C/Y	=	2
CPT EFF	=	6.10
NOM	=	8.46
C/Y	=	4
CPT EFF	=	8.20

Just in case you are wondering, both EAR and EFF are used to represent the effective annual rate.