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Which of the following statements about APR (Annual Percentage Rate) and EAR (Effective Annual Rate) is NOT true? EAR is the real interest rate consumer

Which of the following statements about APR (Annual Percentage Rate) and EAR (Effective Annual Rate) is NOT true?

EAR is the real interest rate consumer pays.

APR considers compounding.

EAR is usually higher than APR if the compounding frequency is more than annual.

Truth-in-lending laws in the U.S. require that lenders disclose an APR on virtually all consumer loans.

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