$11$

Which one of the following statements related to loan interest rates is correct?

$0\mathrm{.}5$

points

$01$:$04$:$55$

Multiple Choice

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eBook

$$ The annual percentage rate reflects the compounding of interest.

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Print

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References

When comparing loans, one should compare their effective annual rates.

Lenders are most apt to quote the effective annual rate.

Regardless of the number of compounding periods per year, the effective annual rate will always be higher than the annual percer

Given a fixed annual percentage rate, the greater the number of compounding periods per year, the lower the effective annual rate