You invested in a 3-month certificate of deposit at your bank. Your investment was $2,036, and at the end of the term you will receive $2,394 a. What is the holding period return (HPR) on your investment? (Round your answer to 2 decimal places.) HPR b. What is the annual percentage rate (APR)? (Round your answer to 2 decimal places.) APR c. What is the effective annual rate (EAR)? (Round your answer to 2 decimal places.) EAR

You invested in a 3-month certificate of deposit at your bank. Your investment was $2,036, and at the end of the term you will receive $2,394 a. What is the holding period return (HPR) on your investment? (Round your answer to 2 decimal places.) HPR b. What is the annual percentage rate (APR)? (Round your answer to 2 decimal places.) APR c. What is the effective annual rate (EAR)? (Round your answer to 2 decimal places.) EAR

 

Solution

Holding period