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What is the difference between APR and APY? a.) APY is a simpler measure of yield than APR. b.) APY includes accrued compounding interest when

What is the difference between APR and APY?

  • a.) APY is a simpler measure of yield than APR.
  • b.) APY includes accrued compounding interest when calculating yield, whereas APR does not.
  • c.) For the same loan, the APY is typically less than the APR.
  • d.) APY gives you a less accurate understanding of the interest rate of an investment, as compared to APR.

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