12b 20Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › 12b 20This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts September 4, 2021 at 5:25 pm #634323 johnbrianeMemberTopics: 170Replies: 160☆☆☆Sir the formula of EAR Is(1+nominal rate / n)^n-1In this question 12b.20They have ignored the n which is below Why is that sir ?I mean the “n” denominator is ignored September 5, 2021 at 9:46 am #634399 John MoffatKeymasterTopics: 56Replies: 53744☆☆☆☆☆We would only divide by 4 to get a three monthly rate if 2.1% was the annual rate.Since the question does not say that 2.1% is an annual rate then it must already be the 3 monthly rate and there is therefore not need to divide by 4.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In