1. EAR (effective percentage rate) vs APR (annual percentage rate) Back when interest rates and inflation were about 18%, Congress passed the Truth

1.     EAR (effective percentage rate) vs APR (annual percentage rate)

Back when interest rates and inflation were about 18%, Congress passed the Truth in Lending Law, requiring lenders to show both figures to prospective borrowers. If the APR on a car loan is 6%, with interest compounded annually, what's the EAR?

What is the EAR if interest is compounded Monthly? if compounded Daily? WHY are these 3 answers different?