Question
11. What's the difference between APR and EAR? A. Lenders are legally required to show borrowers the EAR on any loan offered. B. EAR loans
11. What's the difference between APR and EAR?
A. Lenders are legally required to show borrowers the EAR on any loan offered. B. EAR loans use compounding interest, and APR loans don't.
C. EAR is a more accurate representation of what you'll actually pay in interest on a loan than APR.
D. EAR computes interest on a loan from the first day of the loan, while APR computes interest from the end of the first month of the loan.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
