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Which one of the following statements is correct? Question 10 options: 1) The EAR, rather than the APR, should be used to compare both investment

Which one of the following statements is correct?

Question 10 options:

1)

The EAR, rather than the APR, should be used to compare both investment and loan options.

2)

The APR on a monthly loan is equal to (1 + monthly interest rate)12 - 1.

3)

The APR is the best measure of the actual rate you are paying on a loan.

4)

The EAR is always greater than the APR.

5)

The APR is equal to the EAR for a loan that charges interest monthly.

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