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Which of the following is true? The Effective Annual Interest Rate (EAR) is higher than Annual Percentage Rate (APR) assuming that the interest rate compounds

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Which of the following is true? The Effective Annual Interest Rate (EAR) is higher than Annual Percentage Rate (APR) assuming that the interest rate compounds more than once a year. Generally, the more often the interest rate compounds, the higher the Effective Annual Interest Rate (EAR) will be relative to the Annual Percentage Rate (APR). a and b None of the above

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