For a bank deposit paying 12 compounded annually, which one of the following statements is correct APR EAR The real APR is lower than 12 The EAR is higher than 12 There is not enough information to answer the question EAR APR

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For a bank deposit paying 12% compounded annually, which one of the following statements is correct? APR = EAR The real APR is lower than

For a bank deposit paying 12% compounded annually, which one of the following statements is correct?

		APR = EAR
		The real APR is lower than 12%
		The EAR is higher than 12%
		There is not enough information to answer the question
		EAR < APR

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