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Which of the following statements regarding the interest rates is TRUE? a) The Effective Annual Rate (EAR) indicates the actual amount of interest that will

Which of the following statements regarding the interest rates is TRUE?

a) The Effective Annual Rate (EAR) indicates the actual amount of interest that will be earned at the end of one year.

b) Annual Percentage Rate (APR) indicates the indicates the discount rate.

c) The APR with monthly compounding periods is a way of quoting the actual interest earned each quarter.

d) The APR is typically greater than the EAR.

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