Question 10 5 pts The effective annual rate (EAR) will equal the annual percentage rate (APR) if interest is compounded annually. True False Question 11 5 pts Which of the following statements is true of the annual percentage rate (APR)? The APR is similar to the quoted interest rate, which is a simple annual rate. The APR calculation adjusts for the effects of compounding and, hence, the time value of money. The APR takes compounding into account. The APR is the true cost of borrowing and lending. Question 12 5 pts The true cost of borrowing is the: period rate nominal or quoted interest rate 0 0 0 annual percentage rate (APR) effective annual rate (EAR)