Major Points
The EAR differs from the APR because of the intra-year compounding, so for annual compounding the APR and EAR are the same. With annual compounding (one compounding period during the year), the EAR of = .0432 is equal to the APR, so for fifteen years of compounding we find: $100 = $100 (1.0432)15 = $100 x 1.885878 = $188.59 . ................
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