The EAR on a savings account assumes: Multiple Choice O The annual percentage rate varies as the prime rate varies. All interest is withdrawn from the account at the end of each year. All interest payments are reinvested at the same rate as the original deposit into the account. All interest is compounded continuously and immediately added to the account balance. Interest is withdrawn as soon as it is earned Which of the following is a true statement? Multiple Choice Compounding will typically not lead to differences between quoted and effective rates The APR on a loan requiring monthly payments is the annual interest rate you actually pay With monthly compounding, the APR will be larger than the effective annual rate. When comparing investments it is best not to rely solely on quoted rates. An APR is the interest rate per period divided by the number of periods per year