1895. The expansion of EAR is?

equivalent annual rate
equivalent annuity rate
equally applied rate
equal advance rate
✅ The correct answer is A.
The expansion of EAR is equivalent annual rate. The Effective Annual Rate (EAR) is the interest rate that is adjusted for compounding over a given period. Simply put, the effective annual interest rate is the rate of interest that an investor can earn (or pay) in a year after taking into consideration compounding.

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