Answer:
Effective annual rate 8.24%
Explanation:
We solve for the effective rate by calcualte how much is the value of the APR with quarterly compounding.
[tex](1+\frac{APR}{M} )^m = 1 + EAR[/tex]
[tex](1+0.08/4)^4 = 1+ EAR\\(1+0.08/4)^4 -1 = EAR\\\\EAR = 0.08243216[/tex]
