What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs semiannually? Quarterly?
a. The future value of $500 invested at 8 percent for one year
b. The future value of $500 invested at 8 percent for five years
c. The present value of $500 to be received in one year when the opportunity cost rate is 8 percent
d. The present value of $500 to be received in five years when the opportunity cost rate is 8 percent
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