The going rate on your student loan is 8% annual percentage rate (APR), why is your effective
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- The going rate on your student loan is 8% annual percentage rate (APR), why is your effective annual rate on your loan always larger than 8%? Please explain why you might prefer effective annual rate (EAR) over APR.
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Answer rating: 100% (QA)
The effective annual rate EAR on a loan is typically larger than the stated annual percentage rate APR due to the effect of compounding interest APR r... View the full answer
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