Being able to articulate the difference between APR and EAR demonstrates on a fundamental level, an appreciation of the difference between the terms.A rate quoted in APR will always be ______ than an EARLess than or equal toGreater than or equal toGreater thanLess than

Which of the following statements is correct?Question 4Answera.An annual percentage rate (APR) does not include the effect of compounding, therefore it is usually higher than EAR.b.EAR is the annual interest rate that would earn the same interest with a quoted annual compounding interest rate.c.EAR refers to the interest earned by cash flows from an investment over a one-year period divided by the number of times that interest is compounded during the year.d.An effective annual rate (EAR) is the rate that interest earns in one year before the effect of compounding.

Which of the following statement is False?Group of answer choicesAn annual percentage rate (APR) is the rate that interest earns in one year before the effect of compounding.An APR can’t be used as a discount rate because the APR does not reflect the true amount you will earn in one year.The principal is repaid over the life of an amortising loan.Because the APR does not include the effect of compounding, it is always less than the EAR.

he annual percentage rate (APR) of a loan is different from the interest rate because it:A.is calculated from the remaining interest owed.B.includes charges and fees.C.includes the rate but not the fees and charges.D.only covers the interest for a year.

The effective annual rate (EAR) for a loan with a stated APR of 10% compounded quarterly is closest to:a.9.65%.b.12.50%.c.15.00%d.10.00%.e.10.38%

Explain the difference between a ratio and a rate.